Central Bank of India, a leading public-sector lender, has frozen new home loan rates at 8 percent for a period of one year. The new interest rate will applicable for loans up to Rs 20 lakh. The introduction of this scheme will enable the bank to disburse Rs 500 crore of home loans by the end of April.
Borrowers can now take home loans between Rs 5 lakh and Rs 20 lakh at 8 percent instead of 9.25 percent earlier. Central Bank will review the lending rate according to the prevailing market situations after the period of one year is over. Home loan rate upto Rs 5 lakh has already been reduced from 8.5 percent to 8 percent in February.
The benefit of the new scheme will be available for loans sanctioned between March 12 and April 30. State Bank of India, the largest lender, has recently frozen its rates at eight percent for new home loans. | 
