Canara Bank and Indian Bank cut lending rates, home and vehicle loans get cheaper

Leading public sector lenders Canara and Indian Bank on Thursday lowered their repo-linked lending rate (RLLR) by 25 basis points in line with RBI making home and vehicle loans cheaper.

Following the reduction, Indian Bank has cut its home loan interest rates from the existing 8.15 per cent to 7.90 per cent and vehicle loan interest rates from the existing 8.50 per cent to 8.25 per cent. In addition to the reduced interest rates, Indian Bank is also offering benefits such as discounted processing fees and zero documentation charges, the Chennai-based lender said in a statement.

With the RLLR reduction, the minimum rate of interest for all loans have been lowered, Canara Bank said in a statement. With the reduction, the housing loan is starting at 7.90 per cent while vehicle loan begins at 8.20 per cent per annum, it added.