New Delhi: Your dream home could soon become a reality. The regulator of housing finance companies, National Housing Bank (NHB) has expressed hope of decline in the real estate prices in near future. NHB said that there is large number of empty houses which is due to be sold. There is every possibility that prices may drop soon thanks to the higher supply. NHB Chairman and MD R V Verma said the amount of rate cut cannot be predicted yet.

However, on the home loan front, the lenders are gearing up to woo the customers anticipating good upcoming festive season. On Thursday, private bank major ICICI bank had announced to make home loan cheaper by 0.5 percent. Vijaya Bank has also announced home loan rate cut. Earlier, most of the banks including SBI had also slashed home loan rates.

On a home loan of upto Rs 30 Lakhs, ICICI Bank is giving floating rate of 10.25 percent. However, on a home loan of Rs 30 lakh to Rs 1 crore, bank is giving loan on floating rate of 10.5 percent. ICICI Bank has also announced fixed rate of interest. If a customer opts for fixed rate loan for a period of three years, then for Rs 30 lakh, the fixed rate of interest would be 10.5 percent. However, it becomes 10.75 percent for a loan amount ranging between Rs 30 Lakhs to Rs 1 Crore. These home loan rates will be effective till December 31 2012.

On the other hand, the PSU Vijaya Bank has cut home loan by 0.8 percent. On the home loan of upto Rs 30 Lakhs for a period of 10 years, interest rate would be 10.5 percent. However, for a period of 20 years, the rate of interest would be 10.75 percent. For a loan amount more that Rs 30 Lakhs, the rate of interest for a period of 10 and 20 years would be 10.75 and 11 percent respectively.    


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