Karnataka Bank cuts base rate

Karnataka Bank has reduced its base rate by 25 basis points with effect from November 10. The bank’s base rate now stands reduced to 10.75 per cent from the earlier 11 per cent. As a result, all its base rate linked loans have become cheaper by 25 basis points. The reduction is applicable to the existing loans and also loans taken in future. This will enable retail and MSME customers to avail funds at reduced rates, according to a press release. The bank has reduced interest rates on housing loans and car loans by 50 basis points. Housing loans up to Rs 25 lakh will be given at the rate of 10.75 per cent. The revised rate of interest on car loans is 11.25 per cent. The bank said that there has been a corresponding reduction in the rate of interest on deposits by 25 basis points.