Allahabad Bank cuts deposit and lending rates from Feb 10

Kolkata, Feb 5 (UNI) Allahabad Bank has decided to cut interest rates on lending as well as in some buckets of term deposits with effect from Febraury 10.

The decision to reduce the rates was taken keeping in view the reduction in the cost of incremental funds, falling yield in general section and overall market scenario.

The lending rates on retail credit had been reduced largely by 50 basis points to 100 basis points in housing loan, loans for consumer durables, car loans and education loans.

An Allahad Bank release today said the reduction would reduce the interest burden on the students, home loan borrowers as well as those who had taken loans for buying consumer durables.

The reduction was applicable for new loans in both categories - floating and fixed rates.

The Bank hoped the reduction will make the loan schemes more attractive and comfortable to borrowers. In housing loans, the interest rates was reduced by 50 to 75 basis points.

Similarly, interest rates on car loan and consumers durables loans was cut by 100 basis points straightway in all categores.

Education loan too had been softer with a cut in the interest rates by 100 basis points.

Interest rates on deposits was reduced by 25 basis points in all time buckets having tenure of two years and above up to 10 years.

However, deposits in shorter tenure from 61 days to 180 days, the interest rates had been revised upward by 75 to 100 basis points making deposits in these buckets more attractive.

UNI PC SJC RN1929