Days after HDFC, Allahabad Bank and Canara cut home loan rates

Bangalore/ Mumbai, February 5 Five days after housing finance company HDFC announced a reduction in its retail prime lending rate (RPLR) by 25 basis points, the country’s third largest public sector bank Canara Bank and Allahabad Bank today cut their lending rates. While Canara Bank lowered the rate of interest on both existing and new housing loans by 25 basis points with effect from February 7, Allahabad Bank reduced lending rates on housing and car loans by up to 1 per cent on.

Canara Bank’s slash in rate of interest is irrespective of the loan amount and for all tenors upto 25 years. All borrowers who have opted for home loan under the floating rate will get the benefit of interest reduction. The revised rates for loans of up to Rs 20 lakh will be 10 per cent for a five-year tenor, 10.25 per cent for a 10-year tenor and 10.5 per cent for a tenor above 10 to 25 years. For loans above Rs 20 lakh, it is 10.25 per cent, 10.50 per cent and 10.75 per cent respectively, it said.

Kolkata-based Allahabad Bank also revised interest rates on fixed deposits of certain maturities by 1 per cent. The lending rates on retail credit has been reduced by 0.5 per cent to 1 per cent in housing loan, loans for consumer durables, car loans and education loans.

In home loan, the interest rates have been reduced by 0.5 per cent to 0.75 per cent across the board in all tenure buckets, while interest rates on car loan and consumer durables loan has been cut by 1 per cent in all categories.

Education loans too have been made softer with a cut in the interest rates by 0.25 to 1 per cent. Recently, Canara bank had extended the maximum tenor of loans from 20 to 25 years and had created the option of repaying the loan in step-up EMIs to help borroweres in smooth servicing of the loan.

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Days after HDFC, Allahabad Bank and Canara cut home loan rates

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