The Hindu Business Line : Banks reduce interest rates

Public sector Syndicate Bank has reduced the interest rates on fresh housing loans up to Rs 20 lakh. A bank release said here, the interest on loans up to Rs 5 lakh would be 8.50 per cent and up to Rs 20.00 lakh the rates would be 9.25 per cent. The rate of interest on housing loan shall be reset after 5 years from the date of drawal of the first instalment and the borrower will then have the option for going for a fixed rate or a floating rate of interest. The special sc heme would be applicable to all new housing loans availed up to June 2009. Syndicate Bank also dropped the interest rate on existing as well as new borrowers under micro enterprises by 100 bps and small and medium enterprises by 50 bps, the release added. Meanwhile, Canara Bank has reduced its rate of interest on loans and advances to small and medium enterprises. A release said that for micro enterprises the reduction is 100 basis points. For SME, the reduction is 50 basis points for loans up to Rs 2 lakh, repayable in 36 months. Even for loans above Rs 2 lakh and repayable beyond 36 months, reduction is almost at the same rate only. However, the rate of interest varies depending upon the category and gradation of the loans and also the quantum sought. Canara Bank has also introduced the special package as prescribed by the Ministry of Finance guidelines.

— Our Bureau

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