Canara Bank Hikes Auto Loan Rates by 0.5%

Canara Bank, the country's largest private sector lender, on Thursday, announced to initiate a hike of up to 0.5 per cent in its auto loan rates. In addition, the bank will discontinue its 8.25% home loan scheme from March 1. HDFC too has discontinued its 8.25% home loan offer.

"Auto loans rack rates have been raised by 0.25-0.5 per cent depending on segment and tenor with effect from March 5", an Canara Bank spokesperson revealed.

Similarly, Kotak Mahindra Bank has also reported to increase its interest rates on home loans by 50 bps, while Kotak Mahindra Prime has raised auto loans rates by 50 bps from tomorrow.

Kotak Mahindra Bank's prime spokesperson said, "Lending rates reflect the increase in borrowing cost observed over the last 6-8 weeks. While we had absorbed the increase in cost for the month of February, it now needs to be passed on".

Also, the RBI has hiked the cash reserve ratio or the amount banks have to keep with RBI for zero interest by 0.75 per cent to 5.75 per cent, absorbing Rs 3,600-crore from the system, aimed to absorb excess liquidity from the system.

Currently on home-loans, Axis is extending home-loans for up to Rs 30-lakh at 8.75 per cent, loans between Rs 30-lakh to Rs 50-lakh at 9 per cent and those above Rs 50-lakh, at 9.50 per cent.

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Canara Bank Education Loans are available for Graduation / Post graduation / Diploma / Computer education in any recognized State / Central Government / University, professional courses including Engineering / Medical, Agriculture, Veterinary, Law, Dental, Management, courses like ICWA, CA, CFA, etc., Canara Bank Education Loans are also available to the courses conducted by IIM, IISC, XLRI, NIFT etc,

Incase the course is pursued abroad, the institute should be recognized by the competent local aviation / shipping authority. For studies abroad, Canara Bank Education Loans will be made available only for Graduation and Post Graduation Courses offered by Reputed Universities and not for diplomas.