Loans have been an integral part of human society. It has also been a vital component for rolling out funds for banks and generate more revenue in return. But given the high cost of living in recent times many interested applicants have backed out resulting in nearly four years low for credit rate. With the upcoming festive season due to begin soon, the banks have come up with interesting and lucrative offers to lure interested applicants with schemes like processing fee discounts and cash back benefits.
Apart from various discounts and offers in the retail and online shopping space, Federal bank has announced a loan processing fee waiver on Tata Zest. Ram Sangapure, executive director, Punjab National Bank, said, “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.” Apart from the Federal bank and Punjab National bank, other banks may also undertake similar initiatives for the Automotive sector. Currently the interest charges on car loan are about 10.5% - 11.75%, whereas for two-wheeler segment the rate of interest for loans is about 13.25% - 14.25%.
Speaking more about e-comerce segment, an official from SBI said, “Since the most card spends happen around the festival season, we are looking at coming out with several offers across the categories of consumer durables, lifestyle, apparel, etc, for our consumers. We are looking at e-commerce as actively as other retailers.” Adding to the schemes list from Axis Bank, Jairam Sridharan, Head (consumer lending and payments) stated, “We have been seeing growth of about 25 per cent year-on-year in the credit card space and we expect in the festive season, it will be better. As a result, one can expect more offers on the spend side.”
Source: BS
