IOB spares home loans up to Rs 30 lakh

Public sector Indian Overseas Bank on Monday announced 0.50 per cent hike in benchmark lending rate to 14 per cent with effect from August 16, but spared housing loans up to Rs 30 lakh and education advances from the increase.

The existing housing loans and education loans, which are linked to BPLR, are exempted from the present revision, IOB said in a filing to the Bombay Stock Exchange.

Also, fresh housing loans up to Rs 30 lakhs and fresh education loans are spared from the hike, the bank said.

Existing loans under special credit scheme, where fixed rate option is applicable are also exempted from the present revision, IOB added.

A host of banks including the largest lender SBI has raised interest rates following tight monetary measures taken by the Reserve Bank to tame inflation, which has crossed 12 per cent.