Commercial Bank reduces rates on home loans

The Commercial Bank of Ceylon has announced a reduction in the interest rate on its home loan product, offering a floating rate of 12.5 percent per annum or a fixed rate of 13.5 percent per annum.

DGM Personal Banking Commercial Bank Nimal Luxshman, said "The demand for Housing in Sri Lanka is increasing substantially and there is a proportionate increase in the demand for home loans.

The Bank's intention is to promote the growth of Housing in the country which provides social security and increases employment in multiple sectors."

Commercial Bank's home loans are available for purchase of a house or construction of a house, purchase of a condominium apartment, purchasing land and construction of a house, for renovations, extensions or completion or for repayment of a home loan obtained from another institution.

There are two methods of repayment available - the borrower can either pay equated monthly installments where the capital and interest is a fixed sum, or pay back the capital with a fixed monthly installment plus interest on the reducing balance. Applicants must have a regular monthly income (individually or jointly with spouse) that is sufficient to meet monthly loan instalments and other living expenses, the Bank said.

The Commercial Bank's network in Sri Lanka comprises of 182 computer-linked branches, service points and supermarket banking counters and 372 automated teller machines.

The Bank has been adjudged Sri Lanka's 'Bank of the Year' seven times by 'The Banker,' 'Best Bank in Sri Lanka' for 12 consecutive years by 'Global Finance' Magazine, and 'The Best Bank in Sri Lanka' by FinananceAsia twice.

It has also been rated 'Best Local Trade Bank' in Sri Lanka by the UK based 'Trade Finance' magazine.