Allahabad bank offers 1% discount on home loans for festival season

Allahabad Bank has announced a discount of upto 1% on loans as a festive bonanza. This step was taken by the bank in order to entice more customers.

The interest discount on home loans in the floating section lies between 0.25% and 1%. For new home loan in the fixed rate section, the bank offers a discount of 0.50% to 1.75%.

Presently, the home loans valued up to Rs 50 lakhs in the floating rate section carry an interest of 10.25% for period of 15 years while for the equivalent fixed rate loans carry12.50% interest.

The bank has announced this festival bonanza after Punjab National Bank gave festive loans to customers.

The discount offer is open from September 1 to December 31, 2010, it said.