Indian Bank brings downward revision in home, car loan rates

CHENNAI: State-run Indian Bank has cut interest rates on home and auto loans by up to 0.5% to raise distributions in these segments. The banking major brought revision in interest rates of retail loans soon after Union Finance Minister P Chidambaram asked financial institutions to maintain EMIs at affordable level. Indian Bank Chairman and Managing Director T M Bhasin said, “We have recently reduced interest rate on home and vehicle loans with an aim to increase credit disbursement in these segments.” In the housing loan sector, rate has been cut by up to 0.5% and interest rate on car loan has been lowered by 0.25%, with effect from August 25. Housing loan up to Rs 30 lakh can be availed at 10.5% or base rate irrespective of the tenure of the loan. Likewise, home loan rates between Rs 30-75 lakh to 10.75% or base rate plus 0.25%.