Andhra Bank cuts interest rates on retail loans

Rate of interest has been reduced on housing loan from 11% to 10.50% up to 30 lakh, and from 11.25% to 10.75% for above

Andhra Bank has slashed its interest rates on retail loans, a top bank official said today.

The rate of interest has been reduced on housing loan from 11% to 10.50% up to 30 lakh, and above 30 lakhs from 11.25% to 10.75%, on mortgage loans from 16% to 15.50%, and on cars from 12.25% to 11.50%, bank's Deputy General Manager G Ravi Kumar said.

The bank targets Rs 300 crore retail loans from Krishna district here in this financial year, including Rs 100 crore worth of housing loans, Rs 50 crores for car and mortgage loans and Rs 150 crores under non agricultural gold loans, Kumar said.

The bank charges 13% interest on non-agricultural gold loans. The amount under gold loan is enhanced from Rs 1,650 to Rs 2,100 of hallmarked ornaments with 916 purity, he said.

Under housing loan, the beneficiary will get one% interest subversion from the government on loans up to Rs 25 lakh, he said.