Mumbai (PTI): Shortly after Reserve Bank cut its key rates, IDBI Bank on Saturday reduced its home and educational loan rates by 0.5 per cent with immediate effect.

The rate cut will be applicable to both the existing and new customers, the bank said in a press stetment here.

Following the revision, the home loans will be now available to customers for an interest rate of 11 per cent as against 11.5 per cent earlier, the bank said.

Simultaneously, the margin on housing loans has been enhanced from 15 per cent to 20 per cent for loans up to Rs 30 lakh and to 25 per cent for loans over Rs 30 lakh, the bank said.

Country's second largest public-sector bank, Punjab National Bank, had recently cut its prime lending rate by 0.5 per cent effective from November one and deposit rates from December one.