New Delhi: Central Bank of India, keeping pace with the recent developments in Indian banking sector has slashed its interest rates on retail loans by 0.50 percentage points. This reduction in interest rates will be effective from October 1st, 2007.

Unlike other banks, which have reduced the interest rates primarily for home loans, Central Bank of India has done it for a wide spectrum of loans ranging from vehicle loans, home loans, travel loans, education loans, teacher loans and other consumer loans. HDFC lead the rate cuts by slashing rates on home loans on the 24th of Sept and was followed suit by other major banks like SBBJ, Union Bank, Canara Bank, etc.

Vehicle loans from Central Bank of India for a 36 months tenure will now be available at 10% and loans having tenure more than 36 months will have an interest rate of 11 percent. Central Bank of India will also offer consumer loans at an interest rate of 13.50 percent.

The home loans from Central Bank of India will now be available at attractive interest rates ranging from 9% to a maximum of 10.75%. The quantum of interest rate will depend on loan amount and the tenure of the home loan.

Interest rates on travel and tour loans from Central Bank of India have been reduced to 12.50%. Education loans, computer loans, loans to pensioners and teachers from Central Bank of India will also have a 50 basis point reduction.

Established in 1911, Central Bank of India was the first Indian commercial bank which was wholly owned and managed by Indians. Central Bank of India has an extensive network of 3194 branches and 267 extension counters at various centers throughout the length and breadth of the country.