The public sector lender, Andhra Bank, has reduced its interest rates on retail advances such as housing loans, car loans and mortgage loans. The Deputy General Manager of the bank, Mr. G. Ravi Kumar announced the rate cut.
The new interest rates on home loans of up to Rs. 30 lakh is 10.50 percent (from 11 percent). For home loans above Rs. 30 lakh the new interest rate is 10.75 percent, down from 11.25 percent. In addition to this, the bank is also providing 1 percent interest subversion from government on home loans up to the amounts of Rs. 25 lakh. Interest rates on auto loans have been reduced from 12.25 percent to 11.50 percent. Similarly, rates on mortgage loans have been brought down from 16 percent to 15.50 percent.
Talking about the bank's loan targets, Mr. Kumar said that the bank has aimed to achieve Rs. 300 crore worth of retail loans from Krishna district alone for the current fiscal year. Out of this amount, it has targeted to advance housing loans worth Rs. 100 crore, car and mortgage loans worth Rs. 50 crore and non agricultural gold loans of Rs. 150 crore.
For the non agri gold loans segment, the Hyderabad based bank is charging interest rate of 13 percent. The bank's books of accounts show an increase in gold loans from Rs. 1650 to Rs. 2100 of hallmarked gold jewelry having 916 purity.