Lastest Bank Loan Rate Is Super Low

Posted by Kris | Sunday, December 12, 2010 | | 4 comments »


From what i gleamed from my banking friends, the price war for property loans has intensified among the local and foreign banks. The banks used to belong to a cartel that upon agreement decided to fix the loan rates to avoid a price war among themselves. With hot money flowing in, and the stock market reaching new high the race has begun to grab as possible share market as some of the players are not part of the cartel, are offering insane low rates! Thus, the cartel agreement is off and so are the kiddy gloves.

Property developers are rushing to sell their not-yet-built properties to lock in the gains during this profitable times.

The lowest rate offered that i heard so far for new properties : BLR - 2.475%. Current BLR is 6.3%.

BLR is expected to be raised in the near future to rein in inflation due to the influx of hot money and ,locally due to "rationalization" of petrol and sugar prices. "Rationalization" here means everything goes UP UP..except salaries though :(

Note: Eric Cantona's Call To Arm. His Aim:To Topple The Banking System. lol


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4 comments

  1. Simon // 7:00 AM  

    I heard they run by tier.

    100k -1.8
    300k -2.2
    above 500k -2.4

  2. Kris // 7:24 PM  

    Yes, Simon. You are correct. Lower loans amount means higher rates, as the banks want to earn some profit also mah :D

    But currently, i see that the loans rates are better than what you specified for each tier.

    So prospective property buyer should always look around for the best rates :P

  3. ChampDog // 10:28 PM  

    So how long this rate will stay? :)

  4. Kris // 2:15 PM  

    I am not sure ChampDog. If you have extra cash, good time to buy more property for investment especially at your place, ChampDog.

    Although i am not sure whether the bubble will burst or not in a very ugly manner. I think it can only burst when the holding power diminishes dramatically ,high unemployment rate or some MNC do mass layoffs.