Dena Bank further reduces interest rates on home, auto loans by 25 bps under festive offer

NEW DELHI: State-run Dena Bank today said it has further reduced interest rates on new housing loans and car loans by 25 basis points in the floating rate category, as a part of the festival offer.

Last month, the bank had announced a festival offer with 25 per cent discount on new housing loans and car loans.

The new rate would be effective from October 10, 2011, Dena Bank said in a statement.

Thus, the bank has reduced interest rates on floating housing loans and car loans by 0.50 per cent for the ensuing festival season, it said.

The benefit under festival offer will be effective from October 1 to December 31, 2011, it added.

In addition, to give further benefit to the customers, the bank will continue the reduction in the process fee on housing loans and car loans by 50 per cent. These reductions in rate of interest and processing fees will be valid upto December, 2011.

Dena Bank's base rate stands at 10.70 per cent. A bank official said the rebate depends on the quantum and tenure of the loan.

Its prevailing lending rate varies from 11.20-12.75 per cent in case of floating home loans, while for the fixed rate loans it varies from 11.50-12.75 per cent.

For auto loans up to three years, its interest rate is 13.25 per cent and for those above three years, it is 13.75 per cent, the official said, adding that the 25 bps discount will be applicable on these rates.

Source: EconomicTimes