Teaser loans do not seem to come to an end. The largest public sector lender, SBI has declared the extension of its special loan scheme by one more month. The bank has decided to extend the loan scheme till June, an extension by two months from the normal date of expiry of the scheme.
The other counterparts in the scheme like ICICI Bank and HDFC Bank have decided to lapse the scheme.
These were the only three banks which had inititally extended the tenor of the scheme till April 2010 while other banks had dropped it way back in March.
According to a senior SBI official, the bank has decided to extend the scheme due to the popularity it has gained amongst customers and also due to the good liquidity position of the bank.
According to the scheme, the bank offers 8% interest rate in the first year and 9% for the second and third years. After the third year rates would be on a floating basis.
The introduction of these teaser loans by SBI had forced HDFC Bank to again restart the scheme. ICICI Bank had followed suit.
ICICI and HDFC Bank have decided to end their schemes.
"We have no plans to extend the (special) home loan scheme," said an ICICI Bank spokesperson.