India state banks offer cheaper house loans
Indian state-run banks announced Monday they would offer cheaper housing loans as the government seeks to shore up the country's sagging property sector.
Public sector banks will give loans on amounts of up to half a million rupees (10,500 dollars) at 8.5 percent, said the Indian Banks' Association which represents public and private sector banks.
Loans between 500,000 rupees and two million rupees will carry an interest rate of 9.25 percent.
The state-run banks will also waive processing fees for such loans.
Right now, interest rates for house loans stand at more than 10 percent.
The high rates are a hangover from aggressive monetary tightening by India's central bank when inflation was threatening to spin out of control and there were fears the country's economy might overheat.