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Festive offers from banks

Festive offers from banks

On the insistence of the Finance Ministry, many public sector banks are offering discounted rates on car and consumer durable loans. A couple of private banks have joined in, too.

The Indian economy, despite a seemingly brave fight back in the past few weeks, is going through a rough patch. To prop up spending for the festive season, however, the ministry of finance asked banks to lower their loan rates. And many of them have obliged. While some have refused to budge on their current home loan rates (being floating, it wouldn’t matter very long either), rates on loans for cars and consumer durables have been lowered. If you were looking to make a big purchase on loan, now is the time to do it. Being fixed loans, you will have a lower rate throughout the term.

Note: If it isn’t mentioned when the rate is valid until, no end date has been announced.

Loan Bank Interest rate
Home loans Indian Bank 10.20%
Car loans Indian Bank 10.20%
Personal loans Punjab National Bank 12.25%
Consumer durables Indian Bank 10.20%

State Bank of India
Car loans The bank has reduced its interest rate by 20 basis points and will now offer it at 10.55%.
Processing charge State Bank will not charge its earlier 0.51% of the loan as processing fee and has reduced it to a flat Rs500 fee for every loan.
Special offer A special festive loan package is available for salary accountholders at SBI. Effective interest rate on two-wheelers and consumer durables is 12.05%.
Valid till January 31, 2014

Auto loans The bank will offer all auto loans at its base rate, 10.25%.
Home loans All home loans will also be offered at its minimum lending rate of 10.25%.
Processing charge For all home loans, IDBI bank has waived off its original charges of Rs25,000 to Rs50,000. Auto loans also have their processing charge of Rs1,000 waived off.

Punjab National Bank
Auto loans Interest rates on car loans will be 10.65%, two-wheeler loans will be at 12.25%. For a limited period, Punjab National Bank will also give 100% loan on the ex-showroom price while purchasing a car.
Personal loans The new interest rate on personal loans will be 12.75%.
Processing charge Documentation and upfront fee will be completely waived off on auto and personal loans. Fees on home loans are waived off as well.
Valid till January 31, 2014

Oriental Bank of Commerce
Car loans The bank has reduced its interest rates on car loans from 12.25% to 12%.
Personal loans Oriental Bank will offer two separate interest rates for government and private employees. For government employees, this interest rate is 12.15%, while interest rate is pegged at 13.5% for private firm employees.

Corporation Bank
Consumer durables All consumer durable loans at Corporation Bank have been given a generous interest cut from 12.25% to 10.5%.

Dena Bank
Car loans The bank will offer car loans at an interest rate of 11.75%.
Home loans Home loans will be now offered by Dena Bank at an interest rate of 10.25%.
Consumer durables For Dena Bank salary account holders, interest rates on consumer durables will be offered at a 1% discount, with a revised rate of 12%.

Indian Bank
Car, home and consumer durable loans The public sector bank will offer these loans at an interest rate of 10.2% for the festive period.

Kotak Bank
Auto loans Interest rates on car loans have been cut by 25 basis points and will now be offered at 10.75%. Two-wheeler loans will have an interest rate of 11.25%.
Home loans Kotak has revised its interest rate on home loans by 13-20 basis points. The new interest rate will now be 10.25%-10.5%.
Consumer loans All consumer loans will be offered at a flat interest rate of 12.25%.
Personal loans Loans without any security will be offered at interest rates of 14.25%.
Processing fee Processing on all loans mentioned above have been waived off.
Valid till January 31, 2014

Home loans Indiabulls Home Finance has revised its home loan interest rates by 15 basis points to 10.25%. The new rate is applicable on loans below Rs25 lakhs.
Valid till November 30, 2013.

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