Cut home loan rates again: Govt

New Delhi, Dec 19: The Union govt said that it will continue to push for cheaper home loans even for the existing borrowers. Speaking in the Lok Sabha on Friday, Dec 19 Union Home Minister P Chidambaram, who earlier held the finance portfolio, said the govt has asked banks to cut interest rates on home loans.

"We have now prevailed upon bankers to cut their home loan rates. There was a one time cut. There is another cut. Home loan rates have been reduced. For fresh loans up to Rs 5 lakh home loans are being given at 8.5 per cent and from Rs 5 to Rs 20 lakh at 9.25 per cent," Chidambaram said in the Lok Sabha.

His statement assumes importance as public sector banks (PSU banks) on Monday, Dec 15 had slashed the interest rates for fresh home loans of up to Rs 5 lakh will not exceed 8.5 per cent. The lending rate is a maximum of 9.25 per cent for new housing loans in the bracket of Rs 5 lakh and Rs 20 lakh.

"We are talking to the bankers. As the PLR is refixed, they must lend even to the past borrowers and reset the loans rates for past borrowers also. As the PLR is brought down even floating rates must come down," he said in reply to a debate in on review of the economic situation in the country.

'Housing is an important sector and a major driver of the economy', Chidambaram said.

OneIndia News ( with input from Agencies)