Karnataka Bank today reduced base rate, or minimum lending rate, by 0.25 per cent 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 BSE.
It also reduced rate of interest on deposits by 0.25 per cent.
With the reduction in base rate, all loans linked to the base rate would be cheaper by 25 basis points (0.25 per cent).
“The 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 loan up to Rs 25 lakh will attract interest rate of 10.75 per cent and car loans 11.25 per cent per annum.