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Banks are going the whole hog in chasing retail customers by cutting interest rates on home and vehicle loans.
With credit demand muted on the corporate side, banks are marketing retail loans in a big way.
Over the last few weeks, banks such as State Bank of India, Union Bank of India and Corporation Bank have announced festival offers for retail loan borrowers.
Central Bank of India on Friday joined the festival offer bandwagon by cutting interest rates on home loans and car loans by 10 basis points and 150 bps, respectively. (A basis point equals one-hundredth of a percentage point.)
The public sector lender has also reduced the interest rate on personal loans and loans against gold by up to 200 bps and 100 bps, respectively.
The new interest rates are effective from September 1. The bank has waived processing charges on retail advances.
With credit demand muted on the corporate side, banks are marketing retail loans in a big way.
Over the last few weeks, banks such as State Bank of India, Union Bank of India and Corporation Bank have announced festival offers for retail loan borrowers.
Central Bank of India on Friday joined the festival offer bandwagon by cutting interest rates on home loans and car loans by 10 basis points and 150 bps, respectively. (A basis point equals one-hundredth of a percentage point.)
The public sector lender has also reduced the interest rate on personal loans and loans against gold by up to 200 bps and 100 bps, respectively.
The new interest rates are effective from September 1. The bank has waived processing charges on retail advances.
Home, car loans
While Central Bank’s home loans up to Rs 30 lakh will continue at its base rate of 10.50 per cent, the new rates in the above Rs 30 lakh to Rs 75 lakh, and above Rs 75 lakh to Rs 15 crore buckets will be 10.65 per cent (10.75 per cent) and 10.90 per cent (11 per cent), respectively.
The reduced interest rates on home loans have also been extended to the existing borrowers, the bank said in a statement.
Car loans will come at 11 per cent, against 12.50 per cent earlier.
Loans for buying old/second-hand cars will be given at 12 per cent (13.50 per cent).
The reduced interest rates on home loans have also been extended to the existing borrowers, the bank said in a statement.
Car loans will come at 11 per cent, against 12.50 per cent earlier.
Loans for buying old/second-hand cars will be given at 12 per cent (13.50 per cent).
Personal, gold loans
The new interest rates on personal loans to corporate and non-corporate employees are pegged at 14 per cent (14.50 per cent) and 15 per cent (15.50 per cent), respectively.
The bank has effected a steeper cut of 200 basis points in the interest rate on personal loans for pensioners to 12.50 per cent.
In the case of gold loans, the interest rates on overdraft and demand loan against the pledge of gold will be 12.50 per cent (13.50 per cent) and 11.50 per cent (12.50 per cent), respectively.
ramkumar.k@thehindu.co.in
The bank has effected a steeper cut of 200 basis points in the interest rate on personal loans for pensioners to 12.50 per cent.
In the case of gold loans, the interest rates on overdraft and demand loan against the pledge of gold will be 12.50 per cent (13.50 per cent) and 11.50 per cent (12.50 per cent), respectively.
ramkumar.k@thehindu.co.in
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