Corporation Bank cuts lending rates on home, auto loans

Bank cut lending rate on home loans by 0.5%, while the reduction in rates for auto loans is 1%

State-owned Corporation Bank today reduced interest rates on home, auto and consumer durables loans by up to 1.75% to cash in on the festival season demand.

The bank cut lending rate on home loans by 0.50%, while the reduction in rates for auto loans is 1%.

The cut in lending rate for consumer durables loans of up to Rs 5 lakh is 1.75%.

 

The bank offers home loans of up to Rs 50 lakh at base rate of 10.25% for all tenors. For loans of above Rs 50 lakh, the interest rate is 10.50%.

The processing charges are fully waived for loans up to Rs 25 lakh, while 50% concession is offered on loans above Rs 25 lakh, it said.

With regard to auto loans, it said the rate of interest is 10.65% for upto Rs 50 lakh and 50% of applicable processing charges are waived.

Similarly, the rate of interest has been reduced from 12.25% to 10.50% for kitchen and home appliances, solar panels, water heaters etc.

The offer is available for a period of four months till January, 2014.

For the advantage of customers, the bank has made a special arrangement with New India Assurance Company Ltd in offering vehicle insurance coverage at attractive premium.

 

Earlier this week, SBI too had launched festival offers along with other public sector lenders.

According to the country's largest bank, interest rate on car loan has been slashed by 0.20% to 10.55% against the earlier 10.75%.

"Processing charge has also been cut from 0.51% of the loan amount with a minimum of Rs 1,020 to a flat rate of Rs 500," SBI said.