Corporation Bank cuts rates by 50 bps to 1.75%

The rate has been cut from 12.25% to 10.50% for kitchen and home appliances, solar panels and water heaters among others

Mangalore-based public sector lender Corporation Bank has announced a reduction in interest rate ranging from 50 basis points to 175 basis points (1.75 per cent) across various loan schemes for a period of four months ending January 31, 2014. The cut in interest rates applies to home, vehicle and other consumer durables.

Under the festival bonanza offer, the Bank is offering 50 basis points reduction in interest rates on Corp Home (Housing Loan). The Floating Rate of interest for all tenors and for amounts up to Rs 50 lakh is offered at base rate i.e., 10.25 per cent per annum and for amount of loan above Rs 50 lakh is offered at 10.50 per cent per annum.

The processing charges are fully waived for loans up to Rs 25 lakh while 50 per cent concession is offered on loans above Rs 25 lakh, the bank said in a statement.

Under vehicle loans, the Bank is offering a reduction of 1 per cent in interest rates for four-wheelers - for personal use. The rate of interest for vehicle loans up to Rs 50 lakh is offered at 10.65 per cent per annum.

It has also waived 50 per cent of applicable processing charges.

The bank is offering a reduction of 1.75 per cent on consumer durables up to Rs 5 lakh. The rate of interest reduced from 12.25 per cent to 10.50 per cent for kitchen and home appliances, solar panels and water heaters among others.

The bank has made a special arrangement with New India Assurance Company Ltd in offering vehicle insurance coverage.