Canara, Allahabad bank reduce home loan, education loan interest rates

Canara Bank, Corporation Bank, and Allahabad Bank cut home loan interest rates, leaving the Prime Lending Rate (PLR) unchanged. 

With effect from February 7 2008, Canara Bank will reduce interest rates by 25 basis points for new loan borrowers. Existing floating rate home loan customers will also benefit from this rate cut.

For loans up to Rs 20 lakh, the interest rate will be 10 per cent for a five-year loan tenure, 10.25 per cent for 10 years, and 10.50 per cent for tenures 10 years up to 25 years. For loans above Rs 20 lakh, the interest rate has been decreased to 10.25 per cent for the five-year tenure, 10.50 per cent for 10 years, and 10.75 per cent for tenures above 10 years up to 25 years. The bank’s PLR is at 13.25per cent.

Processing fees on home loans has also been slashed by 50 per cent up to March 3, 2008.

Corporation Bank will reduce interest rates on home loans by 50 basis points from February 15 for existing as well as new borrowers. 

Kolkata-based Allahabad Bank will revise interest rates from February 10 for new borrowers by 50-100 basis points on home loans and education loans. In case of home loans, the revised interest rates are applicable to fixed as well as floating interest rate loans. 

Interest rates on education loans have been reduced by 0.25 to 1 per cent.

UCO Bank also may reduce the PLR by 25 basis points to 13.25 per cent on February 11 after its board meeting.

United Bank of India (UBI) has also hinted at a possible rate cut.