State-owned lender Punjab & Sind Bank yesterday (April 17, 2012), announced a cut in home and auto loans for new borrowers by up to 0.75%.
'Punjab & Sind Bank has made drastic changes in the terms for auto and home loans for the benefit of people at large,' said bank's Chairman and Managing Director DP Singh.
The announcement coincided with the Reserve Bank of India ( RBI's) annual credit policy which reduced the benchmark lending rate by 0.5% to 8%.
In home loan, interest rates have been reduced between 0.25-0.50% while for auto loan it varies between 0.25-0.75% depending on maturity and amount borrowed.
The bank offered home loan to its customer between 11-12.75% prior to reduction. At the same time, auto loan rate varied between 12.75-13.75%.
The new rates have become effective from April 1.
Giving the details Singh claimed that the Equated Monthly Installment ( EMI) for auto loan is lowest at Rs1,765 per lakh for the longest repayment period up to 7 years.
The bank is offering home loan at lowest EMI of Rs1,016 per lakh (up to loan amount of Rs30 lakh) with longest repayment period up to 25 years and no prepayment charges are levied, he claimed.
No advance EMI are required to be deposited and interest is charged on daily reducing Balance basis, the statement said.
Meanwhile, the RBI reduced the short-term lending (repo) rates to eight% from 8.5%.
In the Annual Monetary Policy, 2012-13, RBI doubled borrowings under the Marginal Standing Facility for banks to 2% of their deposits with immediate effect to ease liquidity. It also permitted banks to borrow under the MSF even if they have excess government securities holdings.
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'Punjab & Sind Bank has made drastic changes in the terms for auto and home loans for the benefit of people at large,' said bank's Chairman and Managing Director DP Singh.
The announcement coincided with the Reserve Bank of India ( RBI's) annual credit policy which reduced the benchmark lending rate by 0.5% to 8%.
In home loan, interest rates have been reduced between 0.25-0.50% while for auto loan it varies between 0.25-0.75% depending on maturity and amount borrowed.
The bank offered home loan to its customer between 11-12.75% prior to reduction. At the same time, auto loan rate varied between 12.75-13.75%.
The new rates have become effective from April 1.
Giving the details Singh claimed that the Equated Monthly Installment ( EMI) for auto loan is lowest at Rs1,765 per lakh for the longest repayment period up to 7 years.
The bank is offering home loan at lowest EMI of Rs1,016 per lakh (up to loan amount of Rs30 lakh) with longest repayment period up to 25 years and no prepayment charges are levied, he claimed.
No advance EMI are required to be deposited and interest is charged on daily reducing Balance basis, the statement said.
Meanwhile, the RBI reduced the short-term lending (repo) rates to eight% from 8.5%.
In the Annual Monetary Policy, 2012-13, RBI doubled borrowings under the Marginal Standing Facility for banks to 2% of their deposits with immediate effect to ease liquidity. It also permitted banks to borrow under the MSF even if they have excess government securities holdings.
....more info