Canara Bank has decreased the interest rate on car loans sanctioned on or after 1st August 2009.
It has been declared that the revised rate is 8.50 per cent for car loans during first 12 months, 9.50 per cent during the next 24 months and 10 per cent for the 36 to 60 months period. Moreover, for periods above 60 months, the interest rate is 10.50 per cent. Previously the bank was charging an 11 per cent flat rate of interest on cars loans of all durations before this announcement has been made.
Canara Bank’s car loans have grown by an almost 26 per cent to Rs 1,200 crore for the quarter ended June 30, 2009, compared to the corresponding quarter of the last financial year.
Compared to the March 2009 quarter, the bank’s auto loans have increased by just around 8 per cent to Rs 1,200 crore in the June quarter of 2009.
This Bangalore-based public sector has also reduced the floating rate interest on housing loan.