Central Bank of India cuts interest rates on home loans

Central Bank of India has cut interest rates on home loans by between 25 and 50 basis points for a period of one month from February 20 to March 31. The bank has also waived off the processing fees on home loans, said a press release.

The bank has reduced interest rates on housing loans up to Rs 30 lakh having maturity of 10 years to 25 years to 10.75 per cent (11 per cent).

Similarly, interest rates on housing loans of Rs 30 lakh and above and up to Rs 75 lakh having maturity of 10 to 25 years have been reduced to 11 per cent (11.5 per cent).

Interest rates on housing loans of Rs 75 lakh and above having maturity up to 10 years have been reduced to 11.25 per cent (11.5 per cent). For loans of the same amount having maturity of 10 years and above and up to 25 years, the rate has been reduced to 11.25 per cent (11.75 per cent).

Banks are trying to shore up their loan portfolios as the financial year draws to a close. According to the Reserve Bank of India's fortnightly credit report, as on Jan 27, the total bank credit was at Rs 43,51,329.85 crore, lower than Rs 43,54,477.44 crore in the previous fortnight.

On Friday, Bank of Maharashtra had cut the Base Rate by 10 basis points, with effect from February 21, and waived off processing charges for loans up to Rs 25 lakh.