The rate cut along with the expected reduction in prices of houses upon implementation of GST, will benefit customers and will boost the demand for housing sector, said Mahabaleshwara M S, Managing Director & CEO, Karnataka Bank.
Karnataka Bank Ltd has reduced the interest rate on housing loans up to ₹75 lakh by 40 basis points with effect from June 1.
A press release by the bank said here on Friday that now the interest rate on housing loans up to ₹75 lakh will be 8.6 per cent per annum.
For housing loans above ₹75 lakh and up to ₹5 crore, the interest rate will be 8.9 per cent per annum.
Quoting Mahabaleshwara MS, Managing Director and Chief Executive Officer of the bank, the release said that this reduction in interest rate, coupled with the expected reduction in the prices of houses upon the implementation of goods and services tax, will benefit the customers and will boost the demand for housing sector.