Canara Bank lowers home loan rates

Bangalore: Canara Bank has lowered the interest rate on home loans by 0.25 percentage point across all maturities and on fixed and floating rate options. The rates are effective April 1. Under floating rates the interest rate would be 7.25 per cent instead of 7.5 per cent for loans up to five years, irrespective of loan size, Canara Bank said in a release.

For loans above five years tenure, the rates are down to 8 per cent from the earlier 8.25 per cent up to a loan size of Rs 10 lakh irrespective of tenure. For loans above five years exceeding Rs 10 lakh, the new rate would be 8.25 per cent down by 0.25 percentage point from the earlier 8.5 per cent irrespective of tenure. Fixed rates applicable for the above three categories would now are 7.75 per cent (8 per cent), 8.75 per cent (9 per cent) and 9 per cent (9.25 per cent).

This rate cut, coupled with waiver of processing charges up to September 30, 2004, gives the bank a competitive edge over other players in the home loan market, the release said.