OBC hikes interest on home loans

New Delhi, Apr 29 (UNI) Close on the heels of some Commercial Banks hiking home loan interest rates, the Oriental Bank of Commerce (OBC) today announced on increase in interest in this portfolio by 0.5 to 0.75 per cent relating to both floating and fixed rates.

The Bank has also raised its Prime Lending Rate (PLR) from 11 per cent to 11.5 per cent.

This information was given by OBC Chairman K N Prithiviraj at a press conference convened to announce the annual results of the Bank.

The home loans interest rates for floating rates are as follows: for loans upto five years, the rate has been increased to eight per cent from 7.25 per cent; for loans ranging for a period of five to ten years the interest rates have been stepped up to 8.25 per cent from 7.75 per cent and for a period of ten years the rate has been hiked to 8.5 per cent from 8 per cent.

In the category of fixed rates of interest the home loan rates of interest are: upto five years 9.25 per cent up from 8.25 per cent; between five to ten years the interest rates will now be 9.5 per cent up from 8.75 per cent.

Mr Prithiviraj said the interest rates were increased before a decision was taken to have a new PLR rate and it has not yet been decided that the new PLR would be boarded on to new home loans interest portfolio.

He said this will depend upon the market conditions with the shift having taken place from a buyers market to a sellers market. Given the tight liquidity situation, the pressure on lending would increasse from all sectors and sources.

Led by the HDFC Bank, a number of Public and Private sector banks have announced hardening of the interest rate on home loans.

Mr Prithiviraj said any changes in other retail loans will depend upon the market situation, which the Bank was closely monitoring.

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