Public sector lender, Indian Bank, has cut its interest rates on retail loans such as home loans and car loans by up to 50 basis points as a measure to accelerate growth in the retail loans segment.
The Chennai based bank has reduced its interest rates on home loans by up to 0.5 percent. From now on, home loans of up to Rs. 30 lakh, for any tenure, will have interest rates of 10.50 percent, which is the bank's base rate. Base rate is the lowest lending rate below which banks are not allowed to provide loans to customers.
Similarly, for home loans ranging from Rs. 30 - 75 lakh, the rate has been brought down to 10.75 percent. In addition to this, the bank has done away with processing fees or administrative charges on these loans.
On the other hand, interest rates on car loans have been cut by 0.25 percent. With this rate cut, car loans will now be available for 11 percent, instead of 11.25 percent which it charged earlier. The new rates will be applicable only on new car loan customers till 31st October, 2012. For this segment too the bank has waived off processing fees.
On this matter, the Chairman and Managing Director of Indian Bank, Mr. T. M. Bhasin said, "We have recently reduced interest rate on home and vehicle loans with an aim to increase credit disbursement in these segments."