Government owned Central Bank of India has announced that a reduction of up to 2 % in the interest rates across the retail loan categories. This also includes home loans, vehicle loans and other retail advances like the personal loans which have corporate and non corporate borrowers as well as pensioners and gold loans.
Earlier the other lenders like State Bank of India and Indian Overseas Bank had also announced a reduction in the interest rates. But unlike the SBI, the Central Bank of India would also be providing the benefit to the already existing borrowers as well.
The revised rates on the vehicle loans will be applicable to all tenures of up to 84 months. The latest rate revision will come in to effect from September 1, 2012. The new scheme has been announced as a part of its festive scheme.
The banks has also waived off the processing charges on the retail loan segments during the upcoming festive season. Even the Union Bank Of India had also lowered its interest rates on the auto loans by 1.55 to 2.55 %. Moreover it has already decided to do away with the processing fees on the home and auto loans sanctioned between August 15, 2012 and January 26, 2013.