Festive bonanza from banks

By Our Corporate Reporter

CHENNAI, OCT. 10. Usually retailers offer bonanza during festival seasons. Now banks have joined the bandwagon by offering lower interest rates for loans. Two banks have come out with schemes offering home and vehicle loans at reduced interest rates.

State Bank of India is offering housing and renovation loans at 12 per cent annually as a festival bonanza. However loans above Rs. 10 lakhs attract 12.50 per cent interest.

The offer, which is open till November 13, will not involve any processing fees. The transfer of existing home loans availed from any other institution is also eligible for this offer.

Indian Bank, for its part, has come out with a festival offer for home and vehicle loans. Home loans are offered at 11.5 per cent up to Rs. 25 lakhs. The offer is applicable only for new loans. Earlier the bank was charging 12.5 per cent for loans up to Rs. 10 lakhs and 13 per cent for above Rs. 10 lakhs and up to Rs. 25 lakhs.

The bank is also offering vehicle loans at 12.75 per cent up to a maximum of Rs. 5 lakhs with repayment period of less than five years. For repayment period of five years, the interest rate is 13 per cent. Earlier, the interest rate was 13.75 per cent. The offer is for a limited period from October 11 to November 30.

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Section  : Business
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