Mumbai: To ramp up its retail loan book, the public sector lender Dena Bank has further reduced interest rates for the second time in a fortnight on new home and car loans by 25 basis points, the bank said on Saturday.

For the ensuing festival season, the bank has further reduced interest rates on new housing and car loans by 25 bps in floating rate category with effect from October 10.

Along with 25 bps reduction in lending rates on September 25, the bank has reduced interest rates on floating housing and car loans by 0.50 percent, the city-based bank said in a statement.

The bank first launched the festive offer from October 1 and then its lending rate varied from 11.20 to 12.75 percent in case of floating home loans.

Now this would be 10.70 to 12.25 percent under the revised new offer.

For auto loans up to three years, the new rates will be 13 percent and those above three years, it is 13.50 percent, the bank said.

The bank will also continue with the reduction in the processing fee on these loans by 50 percent, it said, adding these reductions will be valid up to December.

(Agencies)