Central Bank of India has announced to freeze the rates of interest for new home loans at eight percent for a period of one year. This has come in the wake of a similar decision taken by State Bank of India, the largest lender of the country. Many banks in the private as well as public sectors are also expected to follow suit.
Central Bank has set no upper limit for the amount of housing loan taken under the new scheme, which will remain applicable till March 31. Once the period of one year is over, the rate of interest will be reset to the original scheme. According to the executive director, the objective of the scheme is to push more credit into the housing sector.
Furthermore, the lending rate for home loans up to Rs 5 lakh has also been reduced by 0.5 percent to 8 percent under a special package. | 
