Banks cash in on fes­tiv­i­ties to boost home loan de­mand

HT Estates - - Front Page - HT Es­tates Cor­re­spon­dent

Sev­eral banks are of­fer­ing limited-pe­riod dis­counts and free­bies with home loans to boost the home loan seg­ment dur­ing the fes­ti­val sea­son. Ac­cord­ing to ex­perts, many other banks are likely to come out with their fes­ti­val of­fers on the back of am­ple avail­abil­ity of liq­uid­ity cou­pled with sub­dued growth in cor­po­rate lend­ing. So far, the Pun­jab Na­tional Bank, Syn­di­cate Bank and Vi­jaya Bank have floated spe­cial schemes to cash in on the fes­ti­val de­mand.

ICICI Bank has an­nounced a “fes­ti­val pric­ing” for home loans and is of­fer­ing float­ing rate home loans at 10.25% for a loans be­low R30 lakh and 10.50% for loans above R30 lakh and up to R3 crore. The same rate of in­ter­est is ap­pli­ca­ble for fixed rate home loans for a fixed ten­ure of one and two years. For a fixed rate loan of three years ten­ure, the of­fer­ing is at 10.50% for loans be­low R30 lakh and 10.75% for loans above R30 lakh and up to R3 crore. This spe­cial fes­ti­val pric­ing is valid for sanc­tions till De­cem­ber 31, 2012.

Pub­lic sec­tor banks, in­clud­ing the Pun­jab Na­tional Bank, Bank of Bar­oda and Vi­jaya Bank have re­duced in­ter­est rates by about 25 to 50 ba­sis points on home loans up to R75 lakh. Some have also de­cided to waive off pro­cess­ing charges.

In­dian Over­seas Bank is of­fer­ing free credit cards to new home loan cus­tomers. In­dian Bank has re­duced in­ter­est rates for cus­tomers who opt for more than one loan, while Vi­jaya Bank has ex­tended the re­pay­ment pe­riod by seven years be­sides re­duc­ing in­ter­est rates and waiv­ing off pro­cess­ing fees.

Pub­lic sec­tor lender Syn­di­cate Bank has also an­nounced a fes­ti­val of­fer for home loans. In­ter­est of 10.5% (equated monthly in­stall­ment is R944 per lakh) is of­fered for loans of up to R25 lakh for 25 years and at 10.75% for loans above R25 lakh to R75 lakh. For loans above R75 lakh, the in­ter­est charged is 10.9%.

The bank has an­nounced that there will be no pro­cess­ing/doc­u­men­ta­tion charge for home loans dur­ing the fes­ti­val of­fer.

Ear­lier, State Bank of In­dia had re­duced rates in Au­gust and now of­fers the cheap­est home loan af­ter a re­duc­tion in its base rate by 0.25% to 9.75%.

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