SBI teaser home loan scheme

Despite the increase in policy rates -repo&reverse repo-and cash reserve ratio by 25 basis points,fund-flushed State Bank of India(SBI)has extended its teaser home loan scheme though with a marginal modification and for the second time till June30.The existing scheme was expected to be over by 30th April.In the modified scheme,the interest rate to be charged by the bank will be 8%for the first year and 9% for the second and third years.However,differential floating interest rates would be charged from fourth year onwards,a senior official of the bank told on condition of anonymity.While the bank would charge an interest rate of 9.25%(2.5%less than the State Bank advanced rate)on the loan amount upto Rs50 lakh,interest rate for the loan amount beyond Rs 50 lakh would be 9.75%(or 2%less than the SBAR)from the fourth year, said the official.(FE 03-05-2010)