Corporation Bank to reduce its interest rates on home loans

Mangalore: Corporation Bank has decided to reduce its interest rates on home loans with effect from 28 January 2003.

For loans having a repayment period of up to five years, the interest rate has been reduced by 50 basis points and for a repayment period of more than five years, it has been reduced by 25 basis points.

As a result, the floating rate on a loan of up to five years has come down to 8.5 per cent. For loans with a repayment period between five and less than 10 years, the rate will be 9.25 per cent, and for loans with a repayment period between 10 and 25 years, the rate will be 9.75 per cent.

The equated monthly instalment for a loan of Rs 1 lakh for a period of 25 years under the revised rates works out to Rs 886.

In the case of fixed rate loans of up to five years, the interest rate will be 8.75 per cent, for loans with a repayment period of between five and less than 10 years, the rate will be 9.5 per cent and for loans for a period of 10 years the rate will be 10 per cent.

In the case of loans taken on a fixed interest rate, the repayment period is restricted to 10 years. In all these slabs, interest is charged on a daily reducing balance.