Corporation Bank cuts Home Loan interest rates

Mangalore-based Corporation Bank has reduced interest rates on fresh floating rate home loans for five to 15 years by 25 basis points. One of the first banks to take the plunge and cut home loan rates, Corporation Bank has cut interest rates on home loans up to Rs 20 lakhs to 10.25 per cent from 10.25 per cent. The bank has also cut interest rates on home loans above 20 lakhs to 11.25 per cent from 11.50 per cent.

The country's largest bank, State Bank of India (SBI) charges 10.75 per cent to 11.25 per cent on floating rate home loans and Punjab National Bank charges up to 10-11 per cent. The other big home loan lender, ICICI also seems unaffected, as all these banks are waiting for indications from the credit policy review due on the July 31. Corporation Bank decided to cut their interest rates owing to easy liquidity and a stagnant home loan portfolio.