Public sector lender, Allahabad Bank has declared a rebate upto 1% on loans as a festive offer. This act by the bank is a move to attract more customers.

The interest rebate on home loans in the floating category is in the range of 0.25% to 1%. For new home loan borrowers in the fixed rate category, the bank provides a rebate of 0.50% to 1.75%.

Currently, the home loans amounting up to Rs 50 lakhs in the floating rate category attract interest of 10.25% for tenor of 15 years while fixed rate loans in the same criterion attract 12.50% interest.

The bank has come with this festival bonanza after Punjab National Bank offered festive loans to customers.

In normal situation, the bank offers car loans at 10.5 to 11%.

The concessional offer is valid from September 1 to December 31, 2010, it said.