Money & Banking

KVG Bank reduces home loan interest rate

Our Bureau Mangaluru | Updated on October 15, 2020 Published on October 15, 2020

The bank has linked the rate to CIBIL score, encouraging borrowers who make timely payments

Dharwad-headquartered regional rural bank Karnataka Vikas Grameen Bank (KVGB) has reduced the interest rate on home loans by 1 per cent.

Quoting P Gopi Krishna, Chairman of KVGB, a press release said on Thursday that the bank has reduced housing loan interest rate to 7.50 per cent linking it to the CIBIL score of the customers to encourage those customers who pay promptly. This reduction in rates will help lakhs of people fulfil their aspiration of owning a house, he said.

At present, the bank has ₹642 crore under its housing loan portfolio. It has set a target of disbursing an additional ₹200 crore by the end of 2020-21, he said.

Also read: KVG Bank inks pact with SBI General Insurance

The bank will be observing the ‘Festival bonanza special campaign’ from October 17 to December 31.

He said customers in the nine districts falling under KVGB’s jurisdiction can even switch their loans from other institutions.

Also read: KVGB to disburse ₹3,700 cr under KCC in FY21

Recently the bank had reduced the interest rate on gold loans to 7.25 per cent. The bank has disbursed around ₹130 crore under the gold loan scheme within a month, he added.

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Published on October 15, 2020
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