Bangalore-based public sector lender Canara Bank has reduced interest rates by 25  basis points  across  most  slabs  under  housing  loans with rates varying from 10.50% to a maximum of 10.75% as part of its festival offer with effect from September 17, 2012.

The bank has also reduced car loan rates by 25 bps with interest rates ranging from 10.75% to 11.25%. The festival offer will be on till January 31, 2013, the bank said in a statement.