Canara Bank cuts rate on house loans

Bangalore, Feb 5 (UNI) Canara Bank today announced it was cutting interest rates on housing loans by 25 basis points with effect from tomorrow.

The new rates would be applicable to all existing and new loans, irrespective of the amount, for tenors up to 25 years.

Borrowers who had opted for home loan under floating rate would get the benefit of interest reduction, a release said here today.

The revised rates for loans upto Rs 20 lakh would be ten per cent for five year tenor, 10.25 per cent for 10-year tenor and 10.50 per cent for loans above ten to 25 years.

For loans above Rs 20 lakh, the rates would be 10.25 per cent, 10.50 per cent and 10.75 per cent respectively.

Recently, the bank had extended the maximum tenor of loans from 20 to 25 years while also giving the option making repayment in step-up EMIs with a view to help the borrowers in smooth servicing of the loan.

The processing charges on home loans had also been reduced by 50 per cent upto March 31 this year, the release said.

UNI RS DS GM 1657