Dena Bank launches 25-bps discount on home, auto loans

On the heels of industry leaders launching special/discounted loans to tap festival sales, the mid-size state-run lender Dena Bank today launched a loan mela of its own under which it offers a 25 basis points discount on new home and auto loans, besides halving the processing fee.

The benefit under festival offer will be effective from October 1 to December 31, 2011, the bank said in a release.

"Dena Bank has reduced the interest rates on new housing loans and car loans by 25 basis points on the card rate. To give further benefit to customers, we have also reduced the processing on new loans by 50% from the existing 1%," the bank said.

Currently Dena Bank's base rate stands at 10.70%.

A bank official said the rebate depends on the quantum and tenure of the loan.

Its prevailing lending rate varies from 11.20 to 12.75% in case of floating home loans, while for the fixed rate loans it varies from 11.50 to 12.75%.

For auto loans up to three years, its interest rate is 13.25% and those above three years, it is 13.75%, the official said, adding the 25 bps discount will be
applicable on these rates.