Everybody wants to take advantages of offer and discounts whenever they go on a shopping. Banks have also come up with a discount and attractive offers for the year 2012 on the arrival of festival's season. The companies are also offering good discount on its items and launched several new products to attract the customers. This is could prove to be a win-win situation for the customers and companies both, as a buyer wants the products to get cheaper, on the other hand companies are desperate to sell its items and banks are ready to provide finance at a lower rate! Definitely, the whole deal seems very attractive but buyers must analyze and understand the offers clearly before finalizing the purchase.
Some important points that a customer should focus when he goes on a shopping are:
- What product you want to purchase?
- How much money would be required?
- Would you need to take a loan for buying the item?
Various loan bonanzas in the ongoing festive season
| The current offer by the banks appears to be very attractive for the customers. Banks are offering rate cut on wide ranges of products such as car loan, personal loan and home loan, etc. In the home loan section, HDFC, ICICI and Bank of Baroda (BOB) has offered the product with a lowered interest rate while SBI and PNB have kept the rate unaffected but lifted processing charges during this period, to some extent. Bank of Baroda has lessened the interest rate and also taken off the complete processing charges under the offer. Following is the home loan charges by some prominent bank under the festival offer: Banks Festive Home Loan Offer 2012 |
| Bank | Home Loan | Festive Benefit | Additional Offer | Offer Valid Till |
| HDFC BANK | Loan Up to 30 Lac @ 10.25%, above 30 Lac & Up to 75 Lac @ 10.5 % | NA | NA | 31-Dec-12 |
| ICICI BANK | Loan Up to 30 Lac @ 10.25%, above 30 Lac & Up to 3 Cr @ 10.5 % | .25% to 1% | NA | 31-Dec-12 |
| SBI | Up to Rs 30 Lac @10% Pa and above 30 Lac @ Rs 10.15% Pa | No Change | Processing Charges reduced by 50% | 31-Dec-12 |
| Bank Of Baroda | Loan Up to 30 Lac @ 10.5%, above 30 Lac @ 10.75 % | 25 bps to 150 bps | 100% waiver of unified processing charges | 30-Nov-12 |
| PNB | 10.5% to 10.75% | No Change | waiver of processing fee | 30-Nov-12 |
The car loan offer also consists of discounts and fee waiver by the banks. HDFC has stretched the loan tenure to seven years for more time ease to its customers. ICICI is offering a reduction up to .75% depending on the term of loan. The interest rate charged by SBI and PNB seems to be most aggressive at 10.5% Pa. The festive offer would be available until 30th Nov or 31st Dec 2012(it may vary from a bank to bank).
The festival car offer by banks is as follows:
Banks Festive Car Loan Offer 2012
| BANKS | CAR LOAN | Festive Benefit | Additional Offer | Offer Valid Till |
| HDFC BANK | NA | Up to .35 % | Tenure up to 7 Years | NA |
| ICICI BANK | 11.5 % to 17 % for various tenure | discount up to .75% | NA | 31-Dec-12 |
| SBI | 10.5 % Pa | No Change | Processing Charges reduced by 50% | NA |
| Bank Of Baroda | Interest @ 11.25 % for 5 year and 11.75 % for more than 5 year loan | Concession in interest rate up to 175 bps on different tenures | 100% waiver of unified processing charges | NA |
| PNB | 10.5 % to 11 % Pa | No Change | waiver of processing fee | 30-Nov-12 |
Final Words
The current offers by banks are attractive and beneficial for the customers, but one should also focus on the total cost for the full term to analyze it better. The festive offer of interest rate discount over the usual rates’ matters a lot in home loans due to high corpus involvement. Car loan customer needs quick service and processing ease along with rate's discount. Customer should focus on its own requirements and ensure the exact match with the current offer before concluding on the loan decision.
About the author:
Amit Sethi is an MBA (Fin) graduate and a Financial Consultant. He has spent 10 years in Equity research, Stock broking and Financial Consultancy Sector. He can be reached at amvilube@gmail.com
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