Co-operative banks hike home loan rates

Taking a cue from commercial banks, some of the leading co-operative banks too have hiked interest rate on home loans by 25 to 75 basis points. Urban co-operative banks are permitted to extend home loans up to Rs15 lakh. Cosmos Bank, for instance, has upped the interest rate on home loans up to Rs5 lakh to 8.50% as against 8.25% before August 1, this year, reports Economic Times.

 

Loans ranging between Rs10 lakh to Rs15 lakh carry an interest of 9.5% as against 8.75% earlier. Mumbai-based Shamrao Vithal Co-operative Bank too has gone for a rate hike on home loans. The interest rate is 10% for a Rs10-15 lakh loan.

 

Saraswat Bank, the largest urban co-operative bank, raised interest on home loans over a month ago. A 10% rate is being charged on home loans up to Rs15 lakh.

 

However, Abhyudaya Bank has not revised the rates over the last six months. The bank charges an interest of 8% on loans up to Rs15 lakh. There are fewer takers for home loans from co-operative banks as compared to commercial banks.