Central Bank slashes retail interest rates

The bank says the lowering of interest rate by 50 bps on retail lending schemes is in view of the coming festive season.

india Updated: Sep 16, 2006 16:25 IST

The Central Bank of India (CBI) on Friday said it has reduced the interest rate by 50 bps on its retail lending schemes keeping in view the coming festive season.

Further, the bank has waived processing charges in respect of housing loan till October 31, it said in a release in Mumbai.

The retail lending schemes in which interest rates have been reduced are housing loans and specific schemes for student, consumer, vehicle, teacher and loans for tours.

For housing loans up to Rs 20 lakh and five years, the interest rates have been brought down from 8.50 and 8 per cent to 8 and 7.50 per cent in the fixed and floating categories respectively.

For over five years but less than 10 years, the rate has been reduced from 9 and 8.50 per cent to 8.50 and 8 per cent in the fixed and floating categories respectively.

In the case of Cent Vidyarthi (student loan), the rate has been reduced from 11 to 10.50 per cent for male students and from 10.50 to 10 per cent in the case of female students.

Vehicle loans too have witnessed a cut in interest rates with the rate on repayment up to 36 months being cut from 9 to 8.50 per cent while for repayment above 36 months, the rate has been brought down from 10 to 9.5 per cent. There is, however, no reduction on the interest rate for second-hand vehicles.

On Cent Trade and Cent Teachers, the rates have been reduced from 10.50 to 10 per cent while in Cent Safar, the rate has been brought down from 11.50 to 11 per cent. The rate of interest on Cent Jewel will now be 9.50 per cent as against the earlier 10 per cent.

First Published: Sep 16, 2006 16:25 IST