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Indian Bank cuts home loan rates by 1%

New Delhi, Nov. 15 (PTI): Joining the bandwagon of other leading banks in slashing interest rate on home loans, Indian Bank has decided to cut rates by 0.5-1.0 per cent in its loans from today as part of the festival package.

Interest rate on loans taken up to five years will be 9 per cent compared with the present 9.5 per cent and for loans of 10 years, it will be 9.5 per cent against 10.5 per cent, while it would be 10 per cent for loans taken for 10-20 years, Indian Bank general manager S. Saranga Kumar said.

The scheme, valid till February 15, 2003, will apply to all fresh loans sanctioned during the period, the official said, adding the bank would not charge any processing and administrative fees.

“With this revision, the rate quoted by Indian Bank becomes the lowest in the market,” Kumar claimed. Others who have slashed the interest rate on home loans include State Bank of India, Housing Development and Finance Corporation and ICICI Bank. This comes in the wake of 0.25 per cent cut in bank rate to 6.25 per cent from 6.50 per cent by Reserve Bank in its recent busy season credit policy.

RBI decision came in the light of softer interest rate regime pursued by the government. Recently, the Chennai-based bank had cut its interest for vehicle loans to 12 per cent from November 1.

Bank of Punjab

Bank of Punjab today announced a 0.25 per cent reduction in interest rates on home loans across all terms.

Under the variable rate scheme, the rate of interest will be 9.25 per cent, 9.75 per cent and 10.25 per cent for one to five years, six to 10 years and 11 to 20 years respectively against 9.50 per cent, 10 per cent and 10.50 per cent charged earlier.

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