Monday, September 13, 2010

PSU banks introduce festive offers for loan borrowers

A month’s time is left for festival season to start and banks have started introducing new schemes to attract more customers. Punjab National Bank (PNB), Allahabad Bank, Uco Bank and Bank of India have launched festival offers, such as loans at concessional rates and waiver of processing and documentation charges. These offers will be available till December end.

In its festive offer PNB is offering home loan at 8.5% - a teaser rate to attract new customers. Under this scheme the concessional rate of 8.5% will offered for three years for housing loans up to Rs50 lakh. Currently, lender is offering 9.25% for loans up to Rs30 lakh with a repayment period of 5 years, and for loans above Rs30 lakh bank is offering interest rate of 10% for similar maturity. For new car loan borrowers also bank is offering a rebate of 0.5 per cent under the fixed option.

Another public sector bank UCO has waived the processing and documentation charges. Bank will offer new car loans at 10.5% for the first three years, with an additional concession of 0.5% in cases where full collateral coverage or salary tie-ups were available, and for doctors and medical practitioners.

S . Srinivasan, general manager, finance, UCO Bank said, "Festive season is a good time to attract new customers as people buy new houses and vehicles."

Allahabad Bank is offering an interest concession of up to 1% on loans under its festive offer. The interest concession offered on housing loans under the floating rate scheme will vary from 0.25% to 1%, but for fixed rate scheme the new borrowers will get a concession of 0.50% to 1.75% for a limited period.

Bank of Indian has introduced a different offer – a deduction of Rs7per gram of gold coin and most probably waive off processing charges.

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