New Delhi: Public sector Dena Bank has reduced the interest rate on housing loans upto Rs. 30 lakhs to Rs. 75 lakhs, from 0.05 percent.
The bank has cut debt of more than Rs. 75 lakhs by up to 0.10 percent. In a statement, the bank said that marginal cost based fund (MCLR) on loans up to Rs 75 lakh will be 8.60 percent per annum. Apart from this, the interest on loans up to Rs 75 lakh will be 8.70%.
In this month, RBI presented monetary policy review, it did not make any changes in the repo rate, reverse repo rate i.e. the same rates as before but RBI reduced standard asset provision on home loan as well as risk-weighted provision (risk Weight loss).
The central bank reduced the standard property provisions on individual housing loans to 0.25 percent and also reduced the risk weightage on such a loan, thereby opening up the door for home loan cheaper. According to the new decision, the risk weightage for home loans above Rs 75 lakh has been reduced from 75 percent to 50 percent.
At the same time, 80 percent single LTV ratio slab has been introduced with 35 percent risk weightage for loans between Rs 30 lakh and Rs 75 lakh. LTV ratio is the proportion of the value of the purchased property of the loan.