Interest Rates on Different Bank Loans

In Bangladesh, a total of 53 local and foreign commercial banks are operating their services. Among all banking services, bank loans or credit is one of the most constituent services for clients. Based on various customer demands, banks introduced different types of loan skims with a lot of options and various interest rates. The following five categories of loans are most demanded in Bangladesh and we are going to let you know clearly which bank offers how much interest rates on different types of credits. Banks Offering the Lowest Interest Rates Private sector lender HSBC Bank is currently offering the cheapest interest rate of 6.85-7.75 percent. Canara Bank offers 7.05-11.85 percent interest rates on home loans. Karur Vysya Bank is offering home loans at interest rates of 7.15-9.35 percent. Mortgage firm Bajaj Housing Finance is currently offering interest rates starting from 7.2 percent. Bank of Maharashtra is offering interest rates of 7.30-9.45 on home loans. The interest rate varies from person to person depending upon the risk profile of borrowers like CIBIL score, gender, salaried or non-salaried, and the amount of loan. If you have an excellent CIBIL score, you will get a cheaper interest rate as compared to those with lower scores. Also, the higher the amount of the loan, the higher the interest rates. In order to control inflation, the Reserve Bank of India (RBI) in early June raised the key repo rate by 50 basis points (bps), which was the second hike within almost a month after the central bank’s Monetary Policy Committee increased it 40 basis points in off-cycle policy review in May. The retail inflation in May stood at 7.04 percent, which is higher than the RBI’s target limit of 2-6 percent. Following this, several lenders, including ICICI Bank, State Bank of India, and HDFC Bank, increased their interest rates for both deposits as well as loans, making loans costlier. According to a report by real estate consultancy firm Ana rock, rising interest rates in the country after the RBI’s recent repo rate hikes and increasing property prices are adversely affecting housing sales. The sales in seven major cities saw a moderation of 15 percent in the June 2022 quarter to 84,930 units, compared with 99,550 units in the March 2022 quarter. The Mumbai Metropolitan Region (MMR) witnessed the highest sales of about 25,785 units in Q2 2022, followed by the NCR with nearly 15,340 units. The report added that developers restricted new supply to about 82,150 units in the June 2022 quarter as against 89,150 units in Q1 2022, an eight percent decline during the period. The MMR and Pune were the only markets to see new launches increase by 26 percent and 14 percent q-o-q, respectively. The remaining top-five cities saw reduced new launches. Read all the Latest News,