Mangalore-based private sector lender Karnataka Bank on Saturday reduced its base rate by 25 basis points with effect from November 10, 2012. The bank's base rate now stands at 10.75 per cent from the earlier 11 per cent.
As a result of the reduction, all its base rate linked loans get cheaper by 25 basis points. The reduction is applicable to the existing loans and also for the future loans. This will enable retail and MSME customers to avail funds at reduced rates.
Further, the bank has aggressively positioned its housing and car loan products by reducing the interest rates by 50 basis points. Thus, the housing loan up to Rs 25 lakh will henceforth be extended at the rate of 10.75 per cent and for car loans revised interest rate is at 11.25 per cent.
There is a corresponding reduction in the rate of interest on deposit also by 25 basis points. With this change, the Bank is offering interest rate of 9 per cent per annum for the deposits of one year to five years and senior citizens will get an additional benefit of 50 basis points.
