Many banks have introduced attractive offers for customers ahead of the festive season in order to boost credit availability. Banks are looking to make the most of higher optimism among citizens by offering loans at lower interest rates.
The goal is to boost demand during the upcoming festive season when citizens usually make a larger number of high-value purchases. The bank offers are also in line with the government’s vision to boost credit availability, which will drive demand during the festive season.
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The State Bank of India (SBI) is offering home loans at interest rates as low as 6.70 per cent, irrespective of the loan amount. The country’s largest public lender has also waived processing fees applicable on loans.
Earlier, borrowers availing loans above Rs 75 lakh from SBI had to pay an interest of 7.15 per cent. But the bank has reduced the home loan rate to 6.70 per cent. The offer will result in savings of 45 bps. Simply put, borrowers will save lakhs in interest payment due to the lower rate.
“The 6.70 per cent home loan offer is also applicable to balance transfer cases. We believe zero processing fees and concessional interest rates in the festive season will make homeownership more affordable,” said SBI.
“Our country has shown tremendous resilience during the pandemic. Being the Banker to every Indian, we, are committed to doing our bit in reviving the economy by enabling housing for all,” the bank added.
Kotak Mahindra Bank has also reduced the interest rate on loans to 6.50 per cent from 6.65 per cent. The special interest rate on home loans will be applicable from September 10 till November 8, 2021, said the bank. The lender said the offer rate will apply to both fresh homes loans and balance transfers.
“This special rate is available across all loans amounts and is linked to a borrower’s credit profile,” Kotak Mahindra Bank said.
Another state-run lender, Punjab National Bank (PNB), has announced has waived service charges and processing fees on all its retail products including home and retail loans.
Meanwhile, the Bank of Baroda also announced loan offers for customers in view of the festive season. It has lowered home and car loan interest rates. The bank is offering a 0.25 per cent discount on the existing applicable interest rate for some and car loans.
The lender is also offering a waiver of processing fees in home loans. Home loan rates will start at 6.75 per cent while car loan rates will start at 7 per cent.
“With the introduction of these retail loan offers for this festive season, we intend to bring festive cheer among our existing loyal customers and also offer new to bank customers an attractive proposition for availing home loans and car loans who will be benefited from lower rates and waiver of processing fee on offer,” Bank of Baroda said in a statement.