Indian banks decide not to extend teaser loan scheme


Bangalore: Most of the Indian banks planned not to extend the special home loan scheme which ended its tenor on 31st March 2010. Banks such as Punjab National Bank, Corporation Bank, United Bank of India and Bank of Maharashtra have decided to end up this scheme. Contrary to this, State Bank of India has extended till 30th April. The bank will offer eight interest for the first year, nine percent for the second and third year and the remaining years would carry interest on a floating basis. Talking to Rupee Times, a senior SBI official said, "We have adequate liquidity coupled with a huge demand for such loans from home buyers. Also, we feel that we can sustain the scheme at these rates." The bank is booking 2,500 crore of loans every month under the special scheme and the year on year home loan portfolio has risen by 30 percent. "We will decide on whether or not to continue the special home loan scheme after RBI announces its annual policy on April 20," said SBI official.