Canara Bank revised auto loan rates as low as 8.50 per cent

Canara Bank a public sector lender has reduced its interest rates on vehicle loans sanctioned on or after August 1, 2009.

As per revised rate, bank will charge 8.50 per cent for vehicle loans during the first 12 months, 9.50 per cent during the next 24 months and 10 per cent for period above 36 months to 60 months.

According to bank press release for the period above 60 months bank will charge 10.50 per cent interest rate. By end June 30, 2009, bank’s auto loans have seen a rise of almost 26 per cent to Rs 1,200 crore as compared to the corresponding quarter of the last financial year.

As against the March 2009 quarter, the bank’s auto loans have grown by just around 8 per cent to Rs 1,200 crore in the June quarter of 2009.