MUMBAI: Closely following the SBI and ICICI Bank's decision to lower their interest rates on various retail loans especially the floating rate home loans for new customers, IDBI has also decided to follow the suit.

IDBI has reduced its floating rates on home loans by 50 basis points and it will now offer the same with an attractive interest rate of 10.50 percent. SBI, the largest public sector bank in India had earlier announced a cut of 50 to 200 basis points on various retail loans. This had turned up the competition in various loan segments. ICICI bank had also announced a cut of 25 to 50 basis points on home, car and personal loans.

Various other banks have also announced similar cuts. HDFC, Axis Bank, BoB, Canara Bank etc. all have slashed their interest rates in past few months to make the most of festive rush. A major reason of this rate cut by major players was the recent slowdown in credit market due to high interest rates. With, banks finding few customers for their home loans, they had little option but to reduce the interest rates. All eyes are now set to the RBI meeting towards the end of October to review the primary lending rate.

IDBI offers home loans with personalized doorstep service to its customers. With simple documentation and extensive legal and technical assistance IDBI home loans are truly a hassle-free experience. In addition to it IDBI offers its home loan customers the flexibility of choosing between floating or fixed interest rate an EMI on monthly reducing balance and balance transfer facility from existing home loan providers. IDBI also provides a special insurance cover on your home loan for a small premium.