Bangalore: 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 7 February.
The slash in rate of interest is irrespective of loan amount and for all tenors upto 25 years, a Canara bank press release said here today.
All borrowers who have opted for home loan under the floating rate will get the benefit of interest reduction.
The revised rates for loans upto Rs20 lakh will be 10% for five year tenor, 10.25 % for 10 year tenor and 10.50% for tenor above 10 to 25 years and for loans above Rs20 lakh, it is 10.25%, 10.50% and 10.75% respectively, it said.
Recently Canara bank had extended the maximum tenor 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 has also been reduced by 50% upto March three, 2008.