Dena Bank announces interest rate cut on home, car loans as festive offer

MUMBAI: Public sector lender Dena Bank, has announced the interest rate cut in home and car loans by 25 basis points (bps) as a festival offer for its customers.

The bank has reduced the interest rates in the floating rate category. The new rate would be effective from October 10.

Accordingly, the bank has announced the reduction in interest rates on floating housing loans and car loans by 0.50 per cent for the upcoming festival season. The customers can avail the benefit under festival offer from October 1 to December 31, 2011.

Besides providing additional benefit to the customers, the bank will also continue the reduced process fee on housing loans and car loans by 50 per cent. The reductions in the rate of interest and processing fees will be effective up to December, 2011.

The base rate of the financial institutions stands at 10.70 per cent.

In case of floating home loans, its lending rate varies from 11.20-12.75 per cent, while for the fixed rate loans it varies from 11.50-12.75 per cent. The bank has fixed the interest rate of 13.25 per cent for auto loans up to three years and 13.75 per cent for more than three years. The bank is also providing the discount of 25 bps on these rates.