Mangalore based Corporation Bank has announced cutting of interest rates on its vehicle and home loans. The lender reduced the interest rates by upto 75 basis points (bps). The new rates would be effective from 1st June.
Depending on the loan tenor and principal amount, the bank has reduced the rates from 10 bps to 75 bps. For loans upto 10 years and under Rs. 25 lakh, rates are 10.50%; loans from Rs. 25 lakh upto Rs. 50 lakh, rates are 10.75%; loans from Rs.50 lakh upto Rs.1 crore at 11%; while the loans for Rs.1 crore and above would cost 11.25%.
For loans tenors above 10 years upto 25 years, the interest rates are as follows; 10.75% for principal upto Rs. 25 lakh; 11% for loans of Rs. 25 lakh upto Rs. 50 lakh; and loans above Rs. 50 lakh would come at 11.25%.
The bank has also changed its tenors, previously there were four tenors. The current tenor of upto 10 year tenor was upto 5 years, and 5 years to 10 years. Similarly there were 10 years to 15 years and 15 years to 25 years.
Vehicle loans upto 5 years would cost 12% of interest, while for vehicle loans above 5 years upto 7 years the interest rates would be 12.50%. Vehicles loan category had three tenors previously; upto 3 years; 3 years upto 5 years; and 5 years upto 7 years.