Canara Bank cuts home loan rates by 0.50%

Just a week after HDFC Bank reduced housing loan rates, Canara Bank has also reduced the rate of interest on housing loans by 50 basis points with effect from October 4, 2007 for all tenors and slabs on fresh loans.

The rate of interest for fresh housing loans up to Rs 20 lakh for repayment periods upto 5 years is 10.25%, for loans above 5 years up to 10 years it's 10.50% and for loans above 10 years up to 20 years it's 10.75%.

The rate of interest for fresh housing loans above Rs 20 lakh for repayment periods up to 5 years is 10.50%, for loans above 5 years up to 10 years it's 10.75% and above 10 years up to 20 years it is 11%. The bank has also reduced processing charges by 50% up to December 31, 2007, an official release said.