Karnataka Vikas Grameena Bank reduces home loan interest by 1%

MANGALURU: In view of the ensuing festival season,

Karnataka Vikas Grameena Bank

(KVGB) has reduced interest rates on home loan by 1 per cent.

P Gopi Krishna

, chairman, KVGB who launched the festival bonanza special campaign here on Thursday said the move seeks to give thrust to the home loan portfolio. Bank has reduced the housing loan interest rate to 7.50 per cent linking to CIBIL score of the Customers to encourage prompt re -payers.

Gopi Krishna also said that the decision to reduce the housing loan interest rate is to reach out not only to the middle class borrowers but also the high net worth customers. At present 7.50% is very competitive in the market and this will result in huge savings for the borrower in their EMI, the chairman said. This reduction in rates will further help lakhs of people in fulfilling their aspiration to have their own house, he added.

At present, the bank is having Rs 642 crore under housing loan portfolio and it has set a target of disbursing a minimum Rs 200 crore further before the end of this fiscal. The Bank is launching a campaign from October 17 to December 31 where people may approach KVGB branches in all nine districts to switch their loan portfolio from other institutions. He also hinted at reducing interest rate on four wheeler and other retail loan products.

The Bank recently reduced the gold loan interest rate to 7.25% which is very competitive in the market and has got a very good response from the public. In a month’s period since the reduction in rates, the bank has disbursed Rs 130 crore in the form of gold loans.

Chandrashekhar D Moro

and

B C Ravichandra

, general managers,

Shrikant Hegde

, assistant general manager and other senior executives were present on the occasion.