The National Housing Bank, regulator for home finance firms has also followed the tracks of SBI, which has reduced the home and auto loan rates, by lowering the refinance rates under a special scheme. According to this scheme the refinance rate isat 75– 100 basis points which heralds the possiblity of a further reduction.

SBI also announced that there would be a reduction of at least 25 basis points which is o.25% points on fixed deposits with a tenure of over 5 years. This further bolsters the possiblity of the rates going lower in the weeks to come.

National Housing Bank (NHB), the regulator for home finance firms, said in a statement on Thursday that the refinance rate for low-income housing would be lowered for the banks and the home financing firms. They also have thoughts to extend these services to other schemes.

However, refinance would not contribute a great sum to the mortgage.

It has been predicted that the rate lowering strategies would also provoke other banks to follow in their foot steps towards parity.

With SBI in the hunt for a larger share of the home loan market in the country, other banks too have voiced their interest in holding and expanding their strength in the market with similar plans to be implemented in the next few days.

(AW- Anil)