The Mumbai based Dena Bank has brought down its interest rates for several products under its retail loans segment. It has slashed its rates for car loans, education loans and personal loans. The reduction in its interest rates have been introduced adhering to Finance Minister P. Chidambaram's advice to public sector banks to keep loans for buying consumer durables cheap and easy to access in order to restore demand in consumer durables sector.
For education loans, the rates have been cut by 2 percent and the new rate of 12 percent will be applicable in this segment. Earlier, the interest rate on education loans was 14 percent. For car loans, the interest rates have been reduced to 11 to 12 percent, a rate cut of about 1 to 1.5 percent. Earlier, the rates were 12.5 to 13 percent.
For personal loans, the interest rates have been slashed to 14 percent, down by 2 percent from the existing 16 percent. Similarly, for consumer durables loans, the new interest rate is also 14 percent. Earlier, interest rates on consumer durables loans were 16.25 percent.