The public sector lender, Allahabad Bank has started a festive scheme as part of which it will offer a rate cut, on interest rates of retail loans, by up to 2 percent. The processing fees on retail loans have also been waived as part the scheme. The scheme will apply on loans disbursed from September 1 till December 31, 2012.

The loans for which the rates have been reduced by two percent are its home loans and loans for home furnishing. In addition to this, the bank has also cut its interest rates for its car loan scheme by the name - AllBank Dream Car, by 25 basis points.

The bank issued a press release which said that it has waived off its processing fees completely for the AllBank Commercial Vehicle Finance scheme and also that it is providing a 50 percent rebate in processing fees on retail loans such as home loans, premium home loans meant for its high net worth customers, car loans and personal loans.