New Delhi: Canara Bank one of the premier banks in the country has reduced the interest rate on its new home loans by 50 basis points (0.50%). In addition to the reduction in home loan rates Canara Bank has also reduced the processing fees on its home loans by 50 percent up to December 31.

Home loans from Canara Bank for a tenure upto 5 years and amounts upto 20 lakhs will now have an interest rate of 10.25 percent. For home loans for a tenure between 5 years and 10 years the interest rate will be 10.50%. For a home loan of tenure ranging from 10 years to 20 years the interest rate will be 10.75%.

New interest rates on home loans of amount above Rs. 20 lakhs and for tenures up to 5 years is 10.50 percent; above 5 years upto 10 years 10.75 ; and between 10 to 20 years at 11 percent.

Nationalized in 1969, Canara Bank recorded the highest net profit of Rs. 1110 Crore in the year March 2005. Profit making since inception, Canara Bank today epitomizes a perfect blend of commercial and social banking.