These offers aren’t restricted to lower interest rates for retail loans -- while some are offering online shoppers extra card points and cash back benefits, others are giving discounts on processing fees.
Punjab National Bank and Federal Bank will offer discounts on interest rates and processing fees on retail loans.
ICICI Bank and State Bank of India (SBI) are announcing offers for online shoppers.
Ram Sangapure, executive director, Punjab National Bank, said that the lender may look at offering home loan at the base rate.
“We may even waive off the processing fee on the loans. In the auto loan space, we will be looking at bringing it down by 50 basis points,” he added.
For home loans, the bank charges 25-75 basis points more than the base rate of 10.25 per cent, depending on the amount and the rate option.
For car loans, it charges 10.5-11.75 per cent, while for two-wheeler loans, the rate is 13.25-14.25 per cent.
With an improvement in demand in the automobile sector in the past few months, banks are increasingly looking at specific offers for loans in this segment.
For instance, private sector lender Federal Bank has waived processing fees for loans for any model of the Tata Zest.
It is also offering flat 10.9 per cent interest for all auto loans, irrespective of the tenure.
Ahead of Ganesh Chaturthi, ICICI Bank has introduced offers for online shoppers.
On the consumer durables front, it has tied up with both online and offline retailers to give 5-20
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