Syndicate bank cuts housing and auto loan rates

Bangalore: Syndicate Bank, a public sector bank, has reduced the rate of its housing and auto loan rates for a limited period up to March 2010. According to the revised rates, the banks would provide home loans at 8.25 percent interest rate for the first two years, 8.75 for 3-5 years on loans worth Rs.30 lakh and 9.25 percent for first two years, 9.75 percent for 3-5 years for loans above Rs.30 lakh.

Currently, the bank's prime lending rate (PLR) is 12 percent and from sixth year onwards the customer would be charged a rate of PLR minus 2.5 percent, subject to a maximum of 11 percent for loans up to Rs.30 lakh and PLR minus two percent, subject to a maximum of 11.5 percent for loans above Rs.30 lakh.

For auto loans under the scheme 'Synd Vahan', the customers would be able to obtain loan for four wheeler at nine percent for the first two years and in the third year customers would be charged a rate of 9.5 percent. Interest rate after the third year would be PLR minus one percent, subject to maximum of 10.5 percent. Currently the bank is providing loan at its PLR.

In the quarter ended June 30, 2009, the bank recorded a net profit of Rs.261.57 crore, registering a growth of 197.61 percent over Rs.87.89 crore in the corresponding period previous year.