State-owned Oriental Bank of Commerce (OBC) on Tuesday reduced interest rate on home loans of up to R30 lakh by 0.1%.
As a new year gift to customers, home loans will now be available 10.40% with an EMI of as low as R937 per lakh, OBC said in a statement.
The base rate or the minimum lending rate of the bank is also 10.4%.
Besides, the bank has also slashed margin for home loans above R20 lakh to 20%, it added.
For loans below R20 lakh, margin will be 15%. On the deposit side, the bank has waived penalty on premature withdrawal on its fixed deposit schemes for all maturities.
On Monday, private sector HDFC Bank slashed its benchmark lending rates by 0.1%.
The bank has reduced The base rate to 9.7% from 9.8%. At the same time, the benchmark prime lending rate (BPLR) of the countryís second largest private bank was also slashed by similar margin to 18.2%.