Central Bank reduced interest rates on home, education and retail loans

On Tuesday a statement was released by the Central Bank of India in which it was stated in case of housing loans, the floating interest rate has been reduced by 25 basis points to 9.25 percent and by 50 basis points on the fixed rate to 10 per cent.  

The public sector lender Central Bank of India also stated that seeing the slow down in industrial growth and to encourage the consumer demand the bank has reduced interest rates on retail loans.

However the interest rate on educational loan has been reduced by 50 basis points to 12 per cent for boys and 11.5 per cent for girl students. The bank has further reduced the interest rate for IIT and IIM students, to 11.5 per cent for boys and 11 per cent for girls.

While for scheduled caste, scheduled tribe and minority students, the interest rate is 11 per cent for male/female students of IITs and IIMs.

In case of other retail loans the bank said the interest rates have been reduced between 50 and 200 basis points. The revised interest rates will come into effect from April 1, 2008 and will be applicable to the new accounts only.