Public sector banks have brought down interest rates in housing loans

Public sector banks have brought down interest rates in housing loans to stimulate demand in the housing sector. Loans upto Rs 20 lakhs will be available at interest rates between 8.5-9.25 per cent a year for tenures upto 20 years for the first five years. Offer would be valid for new loans upto 30-06-2009. Margin would be 10 to 15 per cent with no processing charges and no prepayment penalty. There would also be free life insurance cover for the outstanding amount. ( source BL 161208)