The festive season is spelling bonanza for bank customers.
Punjab National Bank (PNB), Allahabad Bank, Uco Bank and Bank of India have launched festival offers, which include loans at concessional rates and waiver of processing and documentation charges. Offers will be valid till December end.
PNB is offering home loan at 8.5 per cent — a teaser rate to attract new customers. The concessional rate of 8.5 per cent has been fixed for three years for housing loans up to R50 lakh. At present, loans up to R30 lakh attract 9.25 per cent with a repayment period of 5 years, while loans above R30 lakh is available at 10 per cent for similar maturity. Similarily, a new car loan borrower under the fixed option will get a rebate of 0.5 per cent.
UCO Bank has waived the processing and documentation charges. Loans for new cars will be available at 10.5 per cent for the first three years, with an additional concession of 0.5 per cent in cases where full collateral coverage or salary tie-ups were available, and for doctors and medical practitioners.
"Festive season is a good time to attract new customers as people buy new houses and vehicles," said S . Srinivasan, general manager, finance, Uco Bank.
Allahabad Bank is offering an interest concession of up to 1 per cent on loans. While the interest rebate offered on housing loans under the floating rate scheme varies from 0.25 per cent to 1 per cent, new borrowers going for the fixed rate scheme will get a concession of 0.50 per cent to 1.75 per cent for a limited period.
Bank of India has introduced a deduction of R7 per gram of gold coin and is likely to take decision to waive processing charge.