Bangalore-based public sector lender, Canara Bank has reduced the interest rate on vehicle loans sanctioned on or after 1 August 2009, even as its housing finance arm Can Fin Homes reduced floating rate interest on home loans from 1 August.
The revised rate would be 8.50 per cent for vehicle 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, a bank release said.
For periods above 60 months, the interest rate is 10.50 per cent, it added.
Prior to this reduction, the bank was charging an 11 per cent flat rate of interest on vehicle loans of all durations.
Can Fin Homes Ltd (CFHL), the housing finance company sponsored by Canara Bank, meanwhile, announced a reduction in floating interest rates for fresh housing loans with effect from 1 August.
The revised interest rate will be 8.75 per cent for loans up to Rs20 lakh, 9 per cent for loans above Rs20 lakh and up to Rs30 lakh. For loans above Rs30 lakh, the bank will charge 9.75 per cent.