Karnataka Bank, on Thursday, reduced the base rate or minimum lending rate by 0.25 percentage points to 10.75 per cent with effect from November 10, 2012.
“The Bank’s base rate now stands reduced to 10.75 per cent from the earlier 11 per cent,” it said in a filing to the Bombay Stock Exchange. It also reduced rate of interest on deposits by 0.25 percentage points.
With the reduction in base rate, all loans linked to the base rate would be cheaper by 25 basis points (0.25 per cent).
“This said reduction is applicable to the existing loans and also for the future loans. This will enable retail and MSME customers to avail funds at reduced rates and to stay competitive in their market,” it said.
Also, the housing loans up to Rs.25 lakh will attract an interest rate of 10.75 per cent and car loans 11.25 per cent per annum. — PTI