'Acche Din' for Consumers as Banks Begin to Shower Offers
Banks are rolling out attractive offers to woo customers in a bid to cash in the upbeat sentiment during the upcoming festive season. Bankers say demand for consumer loans has started to grow since the formation of a strong government at the Centre in May.
Adding to sentiments is the better-than-expected GDP data, which showed the economy grew at the fastest pace in nine quarters between April and June.
Economists say lenders will be the biggest beneficiary of an economic turnaround as their fate is closely tied to the state of the economy. Bank of America-Merrill Lynch expects loan demand to rise to 17 per cent by March 2015 from a low of around 11 per cent for the fortnight ended August 8, 2014.
Lenders seem to be competing with each other to capture a greater share of this potential demand. State Bank of India, the country's largest lender, earlier this week cut home loan rates by up to 0.15 per cent. Women borrowers get an additional discount on home loans. (Read the full story here)
State-run Punjab National Bank has announced festive season offer on housing loans of up to Rs. 2 crore. The lender is offering an attractive interest rate of 10.25 per cent on home loans. Housing finance major HDFC has slashed interest rates on home loans above Rs 75 lakh to 10.15 per cent. (Read: PNB Launches Festival Offer)
PNB has waived off processing fee and documentation charges on housing, car and two-wheeler loans. It is offering car loans starting 10.65 per cent. Customers who have a good credit rating can get loans at 10.50 per cent.
ICICI Bank, India's largest private sector lender, has launched an equated monthly installment (EMI) facility on debit cards to enable its customers to convert their high value transactions into easy installments. So far, such offers were available on purchases done through credit cards.
Federal Bank is offering 10 per cent cash-back on debit card purchases for a particular brand of mobile phone. The lender has cut interest rates on car loans for women customers. The offer is valid till October 31.
Banks are expected to come out with bigger offers closer to the festivals, but corporates seem to have firmed up concrete plans to attract more foot folds in showrooms and malls.
According to a recent survey by industry body Assocham, advertising budgets for consumer durables, electronics and automobiles are likely to go up by 25-30 per cent ahead of the Navratras.
