Special Housing Loan Scheme

As per the directives of RBI the Public Sector Banks have formed Special Housing Loan Scheme for borrowers availing housing loans till 30.06.2009. These loans are available with a host of features. But the scheme is available for those purchasing first house and upto limit of Rs.20 lakhs only. The rate of interest for loans upto Rs.5 lakhs is 8.50% p.a fixed for 5 years. The rate of interest for loans from 5 to 20 lakhs is 9.25% p.a. fixed for 5 years. After five years borrower has the option to continue the loan under fixed option or floating option. And there will be no processing charges on the loans and pre-payment penalty is also not there. And added to this the borrower will get free insurance cover.