A recent press report said that Canara Bank has reduced rates of interest on housing loans and home improvement loans by 50 basis points across all slabs and tenures as a special offer for the festival season. The rates will be applicable from October 10 to January 15, 2012.
Reports said that he bank has also waived its processing charges for the above mentioned loans during this festival, and the additional interest of 25 basis points which was being levied for borrowers acquiring a second residential unit.
The home loan interest rates offered by the bank are as follows:
| Amount | Interest rates | ||
| For 5 years tenure | 5- 10 years tenure | 10-25 years tenure | |
| up to Rs. 30 lakh | 10.75% | 11% | 11.25 % |
| Rs. 30 lakh to Rs. 75 lakh | 11.25% | 11.50% | 12% |
| Rs. 75 lakh to Rs. 3 crore | 11.50% | 12% | 13% |
| More than Rs. 3 crore | 14.25% | 14.25% | 14.25% |
For vehicle loans obtained during the festival period, the rate of interest will be 100 basis points less, and customers will also be eligible for complete waiver of processing charges.