New Delhi: Looks like Canara Bank has decided to follow the footsteps of SBI and ICICI Bank. It has announced a reduction in new personal loan and auto loan interest rates. Now these loans from Canara Bank will be available at 25 to 50 basis points lower than earlier rates. The new rates will be effective from Wednesday, October 17.

The rush to tap the festive rush and get in more customers to lift the sagging balance sheets have prompted many banks in to announce cuts in various loans during the past month. While most of the banks announce a rate cut in home loan segment, SBI and ICICI Bank reduced their rates for a variety of retail loans.

This started a trend of reducing rates on personal loans, auto loans and other retail loans. Canara Bank had also earlier announced a interest rate cut on its floating rate home loans and now extended the offer on personal loans and auto loan segments also.

Personal loans for new customers will now be available from Canara Bank at a reduced rate of 13.25 percent and the auto loans will be offered at 11.50 percent. Canara Bank offers various personal loans through its schemes like Canjewel, Cantech, Cantravel, Canvalue, CanCash etc. and automobile loans from Canara Bank are offered under the CanMobile Scheme.