Reduction in Home loan interest rates by Oriental bank of Commerce

People in India always strive for their own homes. India is a developing nation where most of the Indians are poor or middle class. With an average or a below average growth in GDP, the Inflation is very high and whatever they earn, it goes in their basic livelihood. Due to hike in real estate prices from last couple of years, they could not even think of having a home. Sometimes, people gets ready to take up a risk and agrees to take a home loan. But, high interest rates and processing fees do not let them do that. Due to high interest rates, there would be high EMI’s, where your principle deduction would be very less in the initial years. Therefore, for most of the middle class, owing their dream home will always remain as a dream only.

But, now the scenario is changing. Banks and the financial institutions of the country has taken a step to reduce the home loan interest rates to some extent that have given a relaxing breath to all those who are looking for a home loan. The first step was taken by a privileged bank of India i.e. “SBI”, then the move was supported by PNB and some private banks like HDFC Bank, ICICI bank, and Axis Bank. Oriental bank of commerce has joined this race and by now, many banks have reduced their interest rates on home loans. Now, people can definitely look upon for their dream keys with a reduction in home loan interest rates.

Now, we’ll discuss the reduction in Oriental bank of commerce home loan interest rates as per the new move taken by the OBC.

New Oriental bank of commerce Home loan interest rates:

Loan amount	Old rates	New rates
Loan amount up to 75 lacs	10.25%	10.25%
Loan amount above 75 lacs	10.75%	10.25%

 

Therefore, these are the reduction in the OBC home loan interest rates. Like all the other banks, Oriental bank of commerce has also put more emphasis on the higher amount of loan and that is above Rs 75 lacs. Now, whatever be the amount of home loan demanded by the public, the rate of interest will be uniform or single. No matter what the amount of home loan exceed crores, but you need to pay only 10.25% as the interest on to that loan amount. This is an amazing step taken by the banks, especially oriental bank of commerce, where the home loan interest rate is kept just parallel to its base rate and that is 10.25%.

Benefits of Reduction in Oriental bank of commerce home loan interest rates:

v  Benefits to nation:

Due to reduction in OBC home loan interest rates, there would be an increase in demand for home loans of higher amount. This will create new infrastructure in the nation, employment for the labor class, mobilization of money where many suppliers of the materials will be involved, increase an income for the banks and development of whole economy. With all these changes, the GDP of the nation will grow at a different pace.

v  Benefits to customers:

With this step of reduced Oriental bank of commerce home loan interest rates, customers have to pay less EMI’s and people can take loans for higher amount easily with no stress on to their pockets.

v  Benefits to banks:

Banks huge ideal funds will start mobilizing thereby, earning good amount of interest for banks. When there will be huge income, our financial institutions will perform better.

Therefore, with the reduction in OBC home loan interest rates, not only its customers and public are benefitted, but, the whole nation will sail in the same boat and India will rise to the good heights in terms of GDP.