State-owned lenders Punjab National Bank (PNB) and Oriental Bank of Commerce (OBC) on Tuesday cut interest rate on auto and consumer durable loans by up to 2.50 per cent.
IDBI Bank has decided to offer home loan and auto loans at the base rate of 10.25 per cent. IDBI Bank has also decided to waive processing fees for both home and auto loans during this period. All new borrowers can avail this facility from October 09, 2013, it said.
The government had last week decided to provide additional funds to the PSU banks to enable them extend more credit to auto and consumer durables sectors to stimulate demand and combat slowdown.
The rate of interest on car loans has been reduced by over a per cent to 10.65 per cent on fixed basis, PNB said. Similarly, for two-wheelers, the interest rate has been slashed to 12.25 per cent while rate of interest on personal loans for purchase of consumer durables has been brought down to 12.75 per cent on fixed basis. These rates are lesser by 1 to 2.50 per cent from the existing floating rates, it said.
Besides, it said, there will be full waiver of upfront fee and documentation charges. In case of car loan, the bank will finance up to 100 per cent of ex-showroom price of car.
According to OBC, interest rate on commercial financing of four wheelers has been reduced to 12 per cent from 12.25 per cent. Similarly, personal loans and consumer durable loans has been reduced by 0.25 per cent to 12.50 per cent for government employees while for others it has been brought down to 13.50 per cent. The new rates would be effective from October 10.