Saturday 28 November 2009
Post Office Savings Schemes
PostOffice Savings Account
3.5% per annum on individual/ joint accounts.
Minimum Rs. 50/-. Maximum Rs. 1,00,000/- for an individual account. Rs. 2,00,000/- for joint account.
Cheque facility available. Interest Tax Free.
5-YearPost Office Recurring Deposit Account
On maturity Rs. 10/- account fetches Rs. 728.90/-. Can be continued for another 5 years on year to year basis.
Rate of interest 7.5% (quarterly compounded)
Minimum Rs. 10/- per month or any amount in multiples of Rs. 5/-. No maximum limit.
One withdrawal upto 50% of the balance allowed after one year. Full maturity value allowed on R.D. Accounts restricted to that of Rs. 50/- denomination in case of death of depositor subject to fulfillment of certain conditions. 6 & 12 months advance deposits earn rebate.
PostOffice Time Deposit Account
Interest payable annually but calculated quarterly.
Period Rate
1 yr. A/c 6.25%
2 yr. A/c 6.50%
3 yr. A/c 7.25%
5 yr. A/c 7.50%
Minimum Rs. 200/- and in multiple thereof. No maximum limit.
Account may be opened by individual. 2,3 & 5 year account can be closed after 1 year at discount. Account can also be closed after six months but before one year without interest. The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.
PostOffice Monthly Income Account
8% per annum payable i.e. Rs. 80/- will be paid every month on a deposit of Rs. 12000/-.
In multiples of Rs. 1500/- Maximum Rs. 4.5 lakhs in single account and Rs. 9 lakhs in joint account.
Maturity period is 6 years. Can be prematurely encashed after one year but before 3 years at the discount of 2% of the deposit and after 3 years at the discount of 1% of the deposit. (Discount means deduction from the deposit.) A bonus of 5% on principal amount is admissible on maturity in respect of MIS accounts opened on or after 8.12.07
15year Public Provident Fund Account
8% per annum (compounded yearly).
Minimum Rs. 500/- Maximum Rs. 70,000/- in a financial year. Deposits can be made in lumpsum or in 12 installments.
Deposits qualify for deduction from income under Sec. 80C of IT Act. Interest is completely tax-free. Withdrawal is permissible every year from 7th financial year. Loan facility available from 3rd Financial year. No attachment under court decree order.
KisanVikas Patra
Money doubles in 8 years & 7 months. Facility for premature encashment.
Rate of interest 8.4% (compounded yearly)
No limit on investment. Available in denominations of Rs. 100/-, Rs. 500/-, Rs. 1000/-, Rs. 5000/-, Rs. 10,000/-, in all Post Offices and Rs. 50,000/- in all Head Post Offices.
A single holder type certificate may be issued to an adult for himself or on behalf of a minor or to a minor, can also be purchased jointly by two adults
National Savings Certificate (VIII issue)
8% Interest compounded six monthly but payable at maturity. Rs. 100/- grows to Rs 160.10 after 6 years.
Minimum Rs. 100/- No maximum limit available in denominations of Rs. 100/-, 500/-, 1000/-, 5000/- & Rs. 10,000/-.
A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or to a minor. Deposits quality for tax rebate under Sec. 80C of IT Act.
The interest accruing annually but deemed to be reinvested will also qualify for deduction under Section 80C of IT Act.
Senior Citizens Savings Scheme
9% per annum, payable from the date of deposit of 31st March/30th Sept/31st December in the first instance & thereafter, interest shall be payable on 31st March, 30th June, 30th Sept and 31st December
There shall be only one deposit in the account in multiple of Rs.1000/- maximum not exceeding rupees fifteen lakh.
Maturity period is 5 years. A depositor may operate more than a account in individual capacity or jointly with spouse. Age should be 60 years or more, and 55 years or more but less than 60 years who has retired on superannuation or otherwise on the date of opening of account subject to the condition that the account is opened within one month of receipt of retirement benefits. Premature closure is allowed after one year on deduction of 1.5% interest & after 2 years 1% interest. TDS is deducted at source on interest if the interest amount is more than Rs.10,000/- p.a. The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.
Sec 80C benefit: Investments up to Rs 1 lakh in specified securities (maximum of Rs 70,000 in PPF) qualify for deduction
Compounded half-yearly
Compounded yearly
Compounded quarterly
Payable quarterly
Monday 9 November 2009
FIXED DEPOSIT RATES LIKELY TO GO UP
Fixed Deposit rates likely to go up
9 Nov 2009, 0706 hrs IST, Srikala Bhashyam, ET Bureau
SOURCE: THE ECONOMIC TIMES
Though the Reserve Bank of India (RBI's) recent credit policy didn't have much for the markets to cheer, there are indications of a rising interest rate regime which should be good news for those relying on fixed deposits. The central bank has indicated that rates could tighten up in the coming days and the real impact could be felt in the first quarter of the next year.
The year 2009 has been one of the interesting years in interest rate cycles with the rates coming under central banks' scrutiny throughout the year. While the stimulus packages for the revival of financial markets pushed down the rates to near zero levels in most economies, the rate fall was not significant in the case of the domestic market. In fact, the domestic deposit rates fell only by a couple of percentage points during the first half of the current year.
The government's aggressive borrowing has to a great extent stalled the fall and this is reflected in the poor performance of income funds. As many would have noticed, the lack of fall or even the steady rise in long-term paper rates has changed the performance of income funds.
The picture is unlikely to change in the near term with the RBI too indicating hardening of rates. As a result, tough times are likely to continue for those invested in income funds in the recent times.
But the rising rate is always good news for those looking at bank deposits. The rates that had begun to slip in the last few quarters are not in the reversal mode but it could become a reality in early to middle of 2009. Hence, investors who have the habit of allocating funds in fixed deposits can wait out for a few months to make the investments
.
It is not a bad idea to allocate funds to floaters too as they automatically take care of the changing interest rate scenario. With inflation too expected to move upwards, there is an additional case for the general interest rates to move up.
If you are on the borrowing side, the future scenario is not very comforting as rising rates will once again push up the borrowing costs. The immediate impact would be on products like personal loans and car loans though the latter might get relief from manufactures.
The change in fortunes of the auto sector has once again revived hopes for the sector in general, and increased competition in the passenger car segment could push OEMs to offer discounts. Such discounts could come in the form of subsidised interest rates as seen during boom times.
However, the same can't be said of the two-wheeler segment as the margin pressure is high in this segment. With the loan
ticket size too being small the competition on the funding side too is restricted to a few players. As a result, buyers may not be in for huge discounts.
However, home loan borrowers may escape from the pressures of high borrowing costs as the RBI is understood to be looking at supporting the sector. There are reports that banks are likely to increase the allocation towards priority sector lending and property loans could account for a bigger chunk. That could negate the ill effects of rising borrowing costs and should help the customer base in a big way.
9 Nov 2009, 0706 hrs IST, Srikala Bhashyam, ET Bureau
SOURCE: THE ECONOMIC TIMES
Though the Reserve Bank of India (RBI's) recent credit policy didn't have much for the markets to cheer, there are indications of a rising interest rate regime which should be good news for those relying on fixed deposits. The central bank has indicated that rates could tighten up in the coming days and the real impact could be felt in the first quarter of the next year.
The year 2009 has been one of the interesting years in interest rate cycles with the rates coming under central banks' scrutiny throughout the year. While the stimulus packages for the revival of financial markets pushed down the rates to near zero levels in most economies, the rate fall was not significant in the case of the domestic market. In fact, the domestic deposit rates fell only by a couple of percentage points during the first half of the current year.
The government's aggressive borrowing has to a great extent stalled the fall and this is reflected in the poor performance of income funds. As many would have noticed, the lack of fall or even the steady rise in long-term paper rates has changed the performance of income funds.
The picture is unlikely to change in the near term with the RBI too indicating hardening of rates. As a result, tough times are likely to continue for those invested in income funds in the recent times.
But the rising rate is always good news for those looking at bank deposits. The rates that had begun to slip in the last few quarters are not in the reversal mode but it could become a reality in early to middle of 2009. Hence, investors who have the habit of allocating funds in fixed deposits can wait out for a few months to make the investments
.
It is not a bad idea to allocate funds to floaters too as they automatically take care of the changing interest rate scenario. With inflation too expected to move upwards, there is an additional case for the general interest rates to move up.
If you are on the borrowing side, the future scenario is not very comforting as rising rates will once again push up the borrowing costs. The immediate impact would be on products like personal loans and car loans though the latter might get relief from manufactures.
The change in fortunes of the auto sector has once again revived hopes for the sector in general, and increased competition in the passenger car segment could push OEMs to offer discounts. Such discounts could come in the form of subsidised interest rates as seen during boom times.
However, the same can't be said of the two-wheeler segment as the margin pressure is high in this segment. With the loan
ticket size too being small the competition on the funding side too is restricted to a few players. As a result, buyers may not be in for huge discounts.
However, home loan borrowers may escape from the pressures of high borrowing costs as the RBI is understood to be looking at supporting the sector. There are reports that banks are likely to increase the allocation towards priority sector lending and property loans could account for a bigger chunk. That could negate the ill effects of rising borrowing costs and should help the customer base in a big way.
Friday 6 November 2009
Top 8 Money tips for NRIs
Top 8 money tips for NRIs
Source: Geeta Nair
NRIs, have you’ve been toiling hard to rake in that extra bit but unable to fathom where all your money disappears by the end of the month? Chances are there’s a money leak. Fix it right away with a financial budget says Geeta Nair before your expenses balloon to unimaginable proportions leading you to a debt trap.
A financial budget can help you set your finances in order. It’s all about personal finance. And it’ll help you allocate your income appropriately among your needs, wants and desires enabling you to meet your financial goals easily.
Here’s how NRIs can go about managing their finances:
(1) Ascertain your total income: Jot down all your sources of income. Apart from your regular employment, your part time jobs, dividends, interest income from investments are all sources of income. Total them all.
(2) Save atleast 20% to 30% of your gross income: Says Kairav Shah, Vice President, Personal Finance, Apnaloan.com, “Make it a point to set aside 20% to 30% of your total monthly income towards savings always. Leave this money untouched. And depending on your age, goals and risk profile invest this amount in mutual funds, equities, fixed income among others.”
But then do you have a good support system in place? For instance if you’re living in places like Australia wherein children’s education, retirement, health are supported by the government there’s not much to worry. States Shah, “If you’re covered under a social security in whichever country you reside, you may reduce the said percent by about 5%.”
(3) Buy property at the earliest: NRIs, buy a home at the earliest wherever you stay outside India. Opines Shah, “Most NRIs make the biggest mistake of not buying a home in the foreign country they stay and continue to live in rented apartments for long periods. You must consider buying a home at the earliest. This is because over a period of time property gets expensive, and if you continue to wait, back home too you’ll not be in a position to buy on your return after several years since by then the same may get unaffordable. You’d lose out both ways.” Besides real estate investment in India is important too.
(4) Are you spending on a need or a want? Paying up your monthly rent, electricity and grocery bills are all needs you can’t do without. But you can surely cut down on your several outings at expensive restaurants and shopping sprees that burn a deep hole in your pocket.
With several malls around convenience is in, no doubt. But think. Are you buying goods that you really need or are you following herd mentality? Have you used that food processor you bought last Christmas or is it still lying in a sealed pack in the corner of your kitchen unused? Analyse your past purchases and you’ll know your spending habits.
(5) Put off impulse purchases: Do you go berserk when you hear of heavy discount offers, free gifts and cashback schemes. Stop! Simply put off impulse buying. That buy-one get-one free offer may not be as good as it seems. Besides, give a thought – do you really Need that shirt now or do you Want it because it simply appears to be a good offer?
(6) Follow the 60:30:10 ratio: Try maintaining a ratio of 60:30:10 between your needs, wants and desires. Maintain a list of each of your expenses howsoever insignificant they may seem. And you’ll know how much you’ve ended up spending on items you don’t really need. Segregate the fixed and variable expenditure. While there’s not much you can do with the former, you can easily fine-tune your variable expenditure.
(7) Contingency fund is a must: Financial emergencies such as loss of employment, illness in the family, accidents etc can spring up unpleasant surprises just anytime. You need a contingency fund that can take care of sudden financial needs. Opines Shah, "Keep aside three to six months of your income for emergencies. And you won’t have to dip into your savings in case of a financial crisis."
(8) Stick to your budget, review regularly: Creating a budget is easy but its hard to stick to it. Ascertain each time how closer you have been to your laid out plan. Make necessary changes wherever needed, fine tune and stick to your budget always come what may. Do a review to find out how far you’re on track and whether there is a diversion at all. If yes, make up for the same in the next month and soon you’ll be on the right track to achieving your goals.
Source: The Economic Times - NRI Services
Source: Geeta Nair
NRIs, have you’ve been toiling hard to rake in that extra bit but unable to fathom where all your money disappears by the end of the month? Chances are there’s a money leak. Fix it right away with a financial budget says Geeta Nair before your expenses balloon to unimaginable proportions leading you to a debt trap.
A financial budget can help you set your finances in order. It’s all about personal finance. And it’ll help you allocate your income appropriately among your needs, wants and desires enabling you to meet your financial goals easily.
Here’s how NRIs can go about managing their finances:
(1) Ascertain your total income: Jot down all your sources of income. Apart from your regular employment, your part time jobs, dividends, interest income from investments are all sources of income. Total them all.
(2) Save atleast 20% to 30% of your gross income: Says Kairav Shah, Vice President, Personal Finance, Apnaloan.com, “Make it a point to set aside 20% to 30% of your total monthly income towards savings always. Leave this money untouched. And depending on your age, goals and risk profile invest this amount in mutual funds, equities, fixed income among others.”
But then do you have a good support system in place? For instance if you’re living in places like Australia wherein children’s education, retirement, health are supported by the government there’s not much to worry. States Shah, “If you’re covered under a social security in whichever country you reside, you may reduce the said percent by about 5%.”
(3) Buy property at the earliest: NRIs, buy a home at the earliest wherever you stay outside India. Opines Shah, “Most NRIs make the biggest mistake of not buying a home in the foreign country they stay and continue to live in rented apartments for long periods. You must consider buying a home at the earliest. This is because over a period of time property gets expensive, and if you continue to wait, back home too you’ll not be in a position to buy on your return after several years since by then the same may get unaffordable. You’d lose out both ways.” Besides real estate investment in India is important too.
(4) Are you spending on a need or a want? Paying up your monthly rent, electricity and grocery bills are all needs you can’t do without. But you can surely cut down on your several outings at expensive restaurants and shopping sprees that burn a deep hole in your pocket.
With several malls around convenience is in, no doubt. But think. Are you buying goods that you really need or are you following herd mentality? Have you used that food processor you bought last Christmas or is it still lying in a sealed pack in the corner of your kitchen unused? Analyse your past purchases and you’ll know your spending habits.
(5) Put off impulse purchases: Do you go berserk when you hear of heavy discount offers, free gifts and cashback schemes. Stop! Simply put off impulse buying. That buy-one get-one free offer may not be as good as it seems. Besides, give a thought – do you really Need that shirt now or do you Want it because it simply appears to be a good offer?
(6) Follow the 60:30:10 ratio: Try maintaining a ratio of 60:30:10 between your needs, wants and desires. Maintain a list of each of your expenses howsoever insignificant they may seem. And you’ll know how much you’ve ended up spending on items you don’t really need. Segregate the fixed and variable expenditure. While there’s not much you can do with the former, you can easily fine-tune your variable expenditure.
(7) Contingency fund is a must: Financial emergencies such as loss of employment, illness in the family, accidents etc can spring up unpleasant surprises just anytime. You need a contingency fund that can take care of sudden financial needs. Opines Shah, "Keep aside three to six months of your income for emergencies. And you won’t have to dip into your savings in case of a financial crisis."
(8) Stick to your budget, review regularly: Creating a budget is easy but its hard to stick to it. Ascertain each time how closer you have been to your laid out plan. Make necessary changes wherever needed, fine tune and stick to your budget always come what may. Do a review to find out how far you’re on track and whether there is a diversion at all. If yes, make up for the same in the next month and soon you’ll be on the right track to achieving your goals.
Source: The Economic Times - NRI Services
Get the most out of fixed deposits
Get the most out of fixed deposits
By- Roshan Kumar, ECONOMICTIMES.COM
High volatility in stock markets combined with the easing inflation has again made fixed deposits an attractive avenue for investors, particularly those seeking assured returns. For, FD schemes of banks not only give assured returns but risk-free returns as well, and all one has to do is park one’s money in such a scheme and forget about it till maturity.
The best part of FD schemes are that they are one of the safe investment avenues and there is very little chance of losing you money as banks are closely regulated and monitored by the Reserve Bank of India. In the current turbulent times, investors are increasingly banking on such age-old investment tools.
Another advantage of FD schemes are that they can get you loans of up to 75-90% of the amount deposited with the bank.
Here are some tips to get the most out of FD schemes:
Do your research well
Take a look at the interest rates offered by different banks before going in for a scheme. You also need to decide the tenure of your deposit. The interest rates offered by different banks could vary. Also, the interest rates for different tenures are different.
Interests offered by banks are either calculated quarterly, half-yearly, yearly or at maturity. So, calculate which bank is going to get you the highest interest.
Suppose there are two banks -- 'A' & 'B'. Bank 'A' gives an interest rate of 10% p.a on a fixed deposit of five years and the interest is calculated on a quarterly basis.
Bank 'B' gives the same interest rate for the same period, but the interest is calculated on a yearly basis. In this case, Bank 'A' will get you more interest than Bank 'B'. The more frequently interests are calculated, the more interest you will get.
Split your FD investments
TDS (tax deductable as source) at 10% is applicable on fixed deposits if the interest earned exceeds Rs 10,000 in a financial year. The tax liability of TDS is determined at the branch level.
To avoid TDS, you can split your fixed deposits, that is, open fixed deposits in different branches of the bank, so that the interest earned does not exceed Rs 10,000 in a particular branch. You could also open fixed deposits in different banks to avoid TDS.
Splitting you fixed deposits has another benefit as well. If you are in need of urgent cash and need to withdraw money, you won't have to break all your fixed deposits.
You could get the money by breaking either one or two FD accounts while the remaining accounts would continue to earn you the predetermined interest.
Re-investing the interest earned
You have the option of either withdrawing the interest earned or reinvesting the same. If you opt for the withdrawal option, the interest earned will be credited to the savings account specified by you on a regular basis.
The interest you earn every year will be higher compared to the previous year if you keep reinvesting the interest. On the other hand, if you withdraw the interest, you will earn the same interest every year until maturity.
Let’s assume that you are planning to invest Rs 50,000 in a FD scheme for 5 years at the rate of 9.5% p.a. and the interest is calculated on a quarterly basis. If you reinvest the interest, your total interest earned will amount to Rs 29,955.49 in 5 years.
If you withdraw the interest, your total interest earned will amount to Rs 24,609.55. That is a difference of Rs 5,345.94. The greater the fixed deposit, the greater the difference will be.
Tax-saver FDs for better returns
Tax saver fixed deposits give you dual benefits. Apart from giving you an assured return, they are also eligible for exemption under Section 80C of the Income Tax Act 1961. However, TDS is applicable.
These fixed deposits have a lock-in period of five years and premature withdrawal is not allowed. You can’t use this deposit as a means to secure loan from the bank and the maximum amount you can invest in this instrument is Rs 1 lakh.
HDFC Bank at present offers 9.50% interest (calculated quarterly) on tax-saving FDs as well as on regular FDs for 5 years. ICICI Bank, on the other hand, gives 8.5% interest (calculated quarterly) on tax-saving FDs and 9.5% (calculated quarterly) interest on regular FDs for 5 years.
If you fall in the higher tax-slab, investing in tax-saver FDs will fetch you more return than a regular FD as tax-saving FDs are exempted under Section 80C.
SOURCE: THE ECONOMIC TIMES
By- Roshan Kumar, ECONOMICTIMES.COM
High volatility in stock markets combined with the easing inflation has again made fixed deposits an attractive avenue for investors, particularly those seeking assured returns. For, FD schemes of banks not only give assured returns but risk-free returns as well, and all one has to do is park one’s money in such a scheme and forget about it till maturity.
The best part of FD schemes are that they are one of the safe investment avenues and there is very little chance of losing you money as banks are closely regulated and monitored by the Reserve Bank of India. In the current turbulent times, investors are increasingly banking on such age-old investment tools.
Another advantage of FD schemes are that they can get you loans of up to 75-90% of the amount deposited with the bank.
Here are some tips to get the most out of FD schemes:
Do your research well
Take a look at the interest rates offered by different banks before going in for a scheme. You also need to decide the tenure of your deposit. The interest rates offered by different banks could vary. Also, the interest rates for different tenures are different.
Interests offered by banks are either calculated quarterly, half-yearly, yearly or at maturity. So, calculate which bank is going to get you the highest interest.
Suppose there are two banks -- 'A' & 'B'. Bank 'A' gives an interest rate of 10% p.a on a fixed deposit of five years and the interest is calculated on a quarterly basis.
Bank 'B' gives the same interest rate for the same period, but the interest is calculated on a yearly basis. In this case, Bank 'A' will get you more interest than Bank 'B'. The more frequently interests are calculated, the more interest you will get.
Split your FD investments
TDS (tax deductable as source) at 10% is applicable on fixed deposits if the interest earned exceeds Rs 10,000 in a financial year. The tax liability of TDS is determined at the branch level.
To avoid TDS, you can split your fixed deposits, that is, open fixed deposits in different branches of the bank, so that the interest earned does not exceed Rs 10,000 in a particular branch. You could also open fixed deposits in different banks to avoid TDS.
Splitting you fixed deposits has another benefit as well. If you are in need of urgent cash and need to withdraw money, you won't have to break all your fixed deposits.
You could get the money by breaking either one or two FD accounts while the remaining accounts would continue to earn you the predetermined interest.
Re-investing the interest earned
You have the option of either withdrawing the interest earned or reinvesting the same. If you opt for the withdrawal option, the interest earned will be credited to the savings account specified by you on a regular basis.
The interest you earn every year will be higher compared to the previous year if you keep reinvesting the interest. On the other hand, if you withdraw the interest, you will earn the same interest every year until maturity.
Let’s assume that you are planning to invest Rs 50,000 in a FD scheme for 5 years at the rate of 9.5% p.a. and the interest is calculated on a quarterly basis. If you reinvest the interest, your total interest earned will amount to Rs 29,955.49 in 5 years.
If you withdraw the interest, your total interest earned will amount to Rs 24,609.55. That is a difference of Rs 5,345.94. The greater the fixed deposit, the greater the difference will be.
Tax-saver FDs for better returns
Tax saver fixed deposits give you dual benefits. Apart from giving you an assured return, they are also eligible for exemption under Section 80C of the Income Tax Act 1961. However, TDS is applicable.
These fixed deposits have a lock-in period of five years and premature withdrawal is not allowed. You can’t use this deposit as a means to secure loan from the bank and the maximum amount you can invest in this instrument is Rs 1 lakh.
HDFC Bank at present offers 9.50% interest (calculated quarterly) on tax-saving FDs as well as on regular FDs for 5 years. ICICI Bank, on the other hand, gives 8.5% interest (calculated quarterly) on tax-saving FDs and 9.5% (calculated quarterly) interest on regular FDs for 5 years.
If you fall in the higher tax-slab, investing in tax-saver FDs will fetch you more return than a regular FD as tax-saving FDs are exempted under Section 80C.
SOURCE: THE ECONOMIC TIMES
SBI extends 8% home loan scheme to March 2010
MUMBAI: India's largest lender State Bank of India has extended its special home loan scheme at 8 per cent interest rate by over four months to March 31, 2010, a move which would provide relief to small home loan borrowers.
The bank, which offers the special scheme under 'My Home Campaign', offers 8 per cent fixed interest rate for 5 years for loans up to Rs 5 lakh, with a maximum tenure of 10 years.
The scheme was originally slated to end tomorrow. For loans above Rs 5 lakh and up to Rs 50 lakh, interest rate has been fixed at 8% during the first year and 8.5% during second and third years, SBI said in a statement here.
The bank is also offering SBI MaxGain, under which it offers home loan as overdraft with possibility of saving interest.
Targeting customers buying high-end properties, the bank is offering SBI Advantage Home Loan, which would carry a fixed interest rate of 8% during the first year and 9 per cent during second and third years, SBI said.
These schemes help clients to know about their loan repayment obligations at low interest rates for 3 to 5 years, the bank said.
After the offer period, customers will have the option to opt for a fixed rate with a reset frequency of 5 years or floating interest rate linked to SBI's advance rate for the remaining loan term, SBI said.
SBI had launched these products in August this year for a limited period of three months.
Source: THE TIMES OF INDIA
The bank, which offers the special scheme under 'My Home Campaign', offers 8 per cent fixed interest rate for 5 years for loans up to Rs 5 lakh, with a maximum tenure of 10 years.
The scheme was originally slated to end tomorrow. For loans above Rs 5 lakh and up to Rs 50 lakh, interest rate has been fixed at 8% during the first year and 8.5% during second and third years, SBI said in a statement here.
The bank is also offering SBI MaxGain, under which it offers home loan as overdraft with possibility of saving interest.
Targeting customers buying high-end properties, the bank is offering SBI Advantage Home Loan, which would carry a fixed interest rate of 8% during the first year and 9 per cent during second and third years, SBI said.
These schemes help clients to know about their loan repayment obligations at low interest rates for 3 to 5 years, the bank said.
After the offer period, customers will have the option to opt for a fixed rate with a reset frequency of 5 years or floating interest rate linked to SBI's advance rate for the remaining loan term, SBI said.
SBI had launched these products in August this year for a limited period of three months.
Source: THE TIMES OF INDIA
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