Corporation Bank cuts home, vehicle loan rates

Corporation Bank has reduced interest rates on home and vehicle loans with effect from June 1.

The reduction varies from 10 basis points to 75 basis points for different tenors and the amount of loans sanctioned. Following are the floating rates of interest for home loans. For loans up to 10 years tenor, the new rate will be 10.50 per cent for amount up to Rs 25 lakh; 10.75 per cent for loans above Rs 25 lakh and up to Rs 50 lakh; and 11 per cent for loans above Rs 50 lakh and up to Rs 1 crore; and 11.25 per cent for loans above Rs 1 crore.

(Previously, there were two tenors of up to five years, and above five years to 10 years.)

In the loans above10 years and up to 25 years tenor, the new rates will be 10.75 per cent for amount up to Rs 25 lakh; 11 per cent for loans above Rs 25 lakh and up to Rs 50 lakh; and 11.25 per cent for loans above Rs 50 lakh.

(Previously, there were two tenors of above 10 years and up to 15 years, and above 15 years and up to 25 years.)

The fixed rate of interest for amount up to Rs 25 lakh remains unchanged at 13.35 per cent, and for loans above Rs 25 lakh at 13.85 per cent.

In the case of vehicle loans, the rate of interest for period up to five years is 12 per cent, and above five years and up to seven years it is 12.50 per cent.

(Previously, there were three tenors of up to three years; above three years and up to five years; and above five years and up to seven years.)

vinayakaj@thehindu.co.in