 "Banks gear up for festive season with retail loans at concessional rates")
Banks are gearing up for the festive season by offering concessions in interest rates for retail loans. Few banks have already launched their retail loans schemes namely housing and car loans at reduced interest rates, while others are in the process of launching them.
During the festive season banks typically record a 20-25% year-on-year growth in retail loans. This year too banks are hopeful of achieving those growth levels.
Federal Bank on Tuesday launched the “My Home My Car Festival” during the August-September period. During this period, the bank will offer a uniform concessional interest rate of 10.25% for all housing loans regardless of the amount and period of loans. Car loan rates start from 10.25%. No processing fee will be levied on housing loans and car loans during the festival period.
Other banks have launched such schemes much in advance and are seeing overwhelming response from the customers. “We launched our schemes from June and customers can take the advantage of these schemes till end-September. So far the response has been very good. We may even extend these schemes beyond September,” said K Rama Murthy, general manager (retail), Corporation Bank.
Corporation Bank is offering housing loans up to Rs 50 lakh at a floating rate of 10.25%, which is also the base rate of the bank. While loans above Rs 50 lakh are being offered at 10.50%. The banks has waived off processing fee as well as pre-payment penalty.
The interest on vehicle loans of up to Rs 5 lakh is being offered at 10.45%, and for loans above Rs 5 lakh and below Rs 10 lakh, the rate of interest is 10.40%. Vehicle loans above Rs 10 lakh is offered at the bank's base rate.
During the festive season banks typically record a 20-25% year-on-year growth in retail loans. This year too banks are hopeful of achieving those growth levels.
Federal Bank on Tuesday launched the “My Home My Car Festival” during the August-September period. During this period, the bank will offer a uniform concessional interest rate of 10.25% for all housing loans regardless of the amount and period of loans. Car loan rates start from 10.25%. No processing fee will be levied on housing loans and car loans during the festival period.
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Corporation Bank is offering housing loans up to Rs 50 lakh at a floating rate of 10.25%, which is also the base rate of the bank. While loans above Rs 50 lakh are being offered at 10.50%. The banks has waived off processing fee as well as pre-payment penalty.
The interest on vehicle loans of up to Rs 5 lakh is being offered at 10.45%, and for loans above Rs 5 lakh and below Rs 10 lakh, the rate of interest is 10.40%. Vehicle loans above Rs 10 lakh is offered at the bank's base rate.