Central Bank reduces interest on retail loans

Mumbai, Mar 18: The Central Bank of India in an attempt to push up the consumer demand has revised downward the interest rate on various retail loans, including housing loans effective from April one.

The Bank in a release here said that the interest rate on housing loans would be reduced by 25 basis points on floating rate to 9.25 per cent and 50 basis points to the fixed rate. On educational loan, the interest rate has been reduced by 50 basis points to 12 per cent for male students and 11.5 per cent for female students. In case of students of IIT and IIM, the interest rate is further reduced to 11.5 per cent for male students and 11 per cent for female students. For Scheduled Caste (SC), Scheduled Tribe (ST) and Minority Students, the interest rate is 11 per cent for both male and female students for normal as well as IIT and IIM studies.

The Bank has cut the rates on retail loans by 50 to 200 basis points and would be applicable to new loans only, the bank clarified.

UNI