To cash in on the festive season, public sector banks are offering special rates for customers taking housing and auto loans together
To revive the sagging sales of automobiles and homes during the festive season, public sector banks — starting with Corporation Bank and, lately, the State Bank of India — are launching combo offers with special rates. And as the icing on the cake, the public sector lenders are also slashing the processing fee by half.
Corporation Bank took the lead in offering the combo deal. Its Combo Offer — taking both Corp Home and Corp Vehicle loan together — provides an additional 0.25% concession in the rate of interest on the vehicle loan. Under this offer, the floating rate of interest for home loans of up to R50 lakh is 10.5% per annum, 10.75% for loans between R50 lakh and R1 crore, and 11% above R1 crore. The interest rate on auto loans is 11.25% for a five-year tenure and 11.75% for seven years.
Kolkata-based UCO Bank will waive the processing fee on home loans if availed with a car loan. And to boost festive buying, the bank is offering a standalone scheme where 50% processing charge on home loans will be waived and 100% in the case of processing charges on car loans.
In fact, UCO Bank and Corporation Bank are not the lone public sector lenders offering such a combo scheme, which, till some time back, was mostly offered by large private sector lenders. This time around, public sector lenders have taken the lead to stay ahead of the competition as loan demand has been sluggish because of higher rates.
Punjab & Sind Bank launched a festival bonanza scheme for home and auto loans to enable customers to realise their dreams of purchasing a home and a car. The bank is financing 100% on-road price of the vehicle and comes with longest repayment of up to seven years on a daily reducing balance.
There is no processing fee and the auto loans by the bank carry the lowest equated monthly instalment (EMI) of R1,699 per lakh. For home loans, the EMI is R915 per lakh up to R30 lakh for 30 years. The bank will waive its 50% processing fee on fresh housing and offers 100% waiver of processing fee for fresh loans in cases where the borrower is availing housing as well as auto loans .