BoI reduces rates on consumer & other loans

* Bank of India slashes rates on educational loans, consumer loans including vehicle loans and housing loans

Bank of India has announced a reduction in rate of interest for educational loans up to Rs.7.50 Lacs by 1% (100 bps) to 11.50% p.a w.e.f Feb 1, 2008.

The bank has also reduced sharply rate of interest on various consumer loans by 2.50% (250 bps) w.e.f Feb 1, 2008. The effective rate now will be 13.25%.

Home Loan up to Rs 20 Lacs with tenor above 5 years have been made more attractive by 25 bps reduction in rate of interest across the board w.e.f Feb 1, 2008.

Effective rates will be,

Tenor ROI (%)

5-10 years 9.75

10-15 years 10.00

15-20 years 10.25

Interest rate on vehicle loans coming under the consumer loan category have also been reduced by 25 bps wef Feb 1,2008 and the effective rates are 11.50% (up to 3 years) to 11.75% (above 3 years).