Central Bank to Keep Home Loan, Education Loan Interest Rates Unchanged

Central Bank, a public sector bank, has announced that it will not reduce interest rates on home and education loans. The step was taken is in spite of other state-run banks like Canara Bank and Allahabad Bank reducing interest rates on housing loans and study loans.

Central Bank offers a 10.5 percent interest rate for fixed rate loans and 9.5 per cent for floating rate loans – for loans up to Rs 20 lakh.

The Prime Lending Rate (PLR) remains at 13 percent. Interest rates have been reduced by 25 to 50 basis points on a few retail loan schemes like Cent Trade (loan to traders), Cent Mortgage (loan against property) and loans to sectors like SME, SSI, and cold storages.

The bank is expected to revise interest rates during March- June 2008.