Dual rate loans from ICICI Bank
If you are looking to buy a house, but are worried about the spiralling interest rates, ICICI Bank’s recently announced teaser home loans may help. After a two-year hiatus, ICICI Bank has come up with teaser home loans again. The scheme will allow you to fix interest rates for one or two years and pay at the applicable floating rate for the remaining duration of the loan. The rate would be fixed for a year at 10.5 per cent for loans of up to Rs 25 lakh, 11 per cent for loans of Rs 25-75 lakh and 11.5 per cent for loans of more than Rs 75 lakh. If you want to fix the rate for two years, the applicable rates will be 0.25 percentage points higher. After the fixed interest period, the rates will be readjusted to the bank’s base rate “plus margin decided at the time of sanction of the loan”.
Tenure on education loans may get longer
There is good news for students who want to borrow money from banks for higher studies. Banks are likely to allow extended repayment period of up to 15 years for education loan, against 5 to 7 years now, if the recommendations made by Indian Banks Association is accepted by the Finance Ministry. For studies in India the maximum loan amount under this new scheme would be Rs 10 lakh; for studies abroad the maximum loan amount is Rs 20 lakh. There will be no margin money requirement on loans up to Rs 4 lakh. However, for a loan above this amount, margin money of 5 per cent will be required with third party guarantee or collateral security depending on the loan value. For studies abroad the margin money will be 15 per cent on a loan amount of above Rs 4 lakh.
Insurance on savings account
Resident savings account holders of Federal Bank now have insurance cover, courtesy the bank. Federal Bank has announced an insurance package called “Federal Assurance Scheme”, in association with New India Assurance Co. Ltd. With this package, account holders will have access to a personal accident cover. It also comes with add on benefits to cover unforeseen eventualities such as natural calamities, fire, theft of household contents and loss of baggage, depending on criteria decided by the bank. However, note that this insurance cover is only for a period of one year; it may be renewed subject to terms and conditions on expiry of the policy.
Youth account
If you’re between 18 and 25 years of age, here’s a bank account designed especially for you. IDBI Bank has launched ‘Being Me’, a savings bank account for youngsters. Account holders will receive a lifetime free ATM cum debit card. Banking services such as mobile and internet banking, any branch banking and so on will also be provided free of cost. Other benefits include no charge for non maintenance of Average Quarterly Balance, preferential rate on educational loans, special ‘Youth Zone’ at select branches, training on financial planning and a preference for project work at IDBI Bank.
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