Canara Bank, the country's third largest public sector lender, has reduced the rate of interest on existing as well as new housing loans by 25 basis points with effect from February 7. The cut in interest rate is irrespective of loan amount and for all tenures up to 25 years, a Canara bank press release said in Bangalore on Tuesday.
All borrowers who have opted for home loan under the floating rate will get the benefit of interest reduction. The revised rates for loans up to Rs 20 lakh (Rs 2 million) will be 10 per cent for five year tenure, 10.25 per cent for 10 years and 10.50 per cent for tenures above 10 to 25 years and for loans above Rs 20 lakh (Rs 2 million), it is 10.25 per cent, 10.50 per cent and 10.75 per cent for the said tenures, it said.
Recently, Canara bank had extended the maximum tenure of loans from 20 to 25 years and had also given the option of repaying the loan in step-up EMIs with a view to help borrowers in smooth servicing of the loan. The processing charges on home loans have also been reduced by 50 per cent up to March 3, 2008.
