Several banks are announcing attractive Christmas offers. Check details
Many banks launched attractive offers for customers before the Christmas holidays to increase credit availability. The banks are trying to capitalize on citizens’ optimism by offering loans at lower interest rates.
The aim is to increase demand during the upcoming Christmas season, when citizens typically make a larger number of high-quality purchases. The banking offers are also in line with the government’s vision of increasing loan availability, which will fuel demand over the Christmas season.
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Previously, borrowers who took out loans above Rs 75 lakh from SBI had to pay interest of 7.15 percent. But the bank cut the home loan interest rate to 6.70 percent. The offer will result in savings of 45 bps. Simply put, borrowers will save lakhs on interest payments because of the lower interest rate.
âThe 6.70 percent home loan offer also applies to compensation transfer cases. We believe that no processing fees and reduced interest rates during the Christmas season will make home ownership more affordable, âsaid SBI.
âOur country has shown tremendous resilience during the pandemic. As the banker for every Indian, we strive to do our part to revitalize the economy by providing housing for all, âadded the bank.
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Kotak Mahindra Bank has also lowered the interest rate on loans from 6.65 percent to 6.50 percent. The special interest rate for home loans is to apply from September 10 to November 8, 2021, the bank said. The lender said the offering rate will apply to both new home loans and balance transfers.
“This special rate applies to all loan amounts and is tied to the borrower’s credit profile,” said Kotak Mahindra Bank.
Another government lender, Punjab National Bank (PNB), has announced that it will waive service and processing fees on all of its retail products, including home and retail loans.
Meanwhile, in light of the holiday season, the Bank of Baroda also announced loan offers to customers. It has lowered the interest rate on home and auto loans. For some loans and car loans, the bank offers a discount of 0.25 percent on the applicable interest rate.
The lender also offers a home loan processing fee waiver. Residential property rates start at 6.75 percent, while auto loan rates start at 7 percent.
“With the introduction of these retail loan offers for this Christmas season, we want to get our existing customers in a festive mood and also offer new bank customers an attractive offer for taking out home loans and car loans that benefit from lower interest rates and waive the processing fee offered,” said the Bank of Baroda in a statement.