Festive season: A look at what rates banks are offering for home, auto loans

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The upcoming festive season can turn out to be a huge bonanza for customers looking for some attractive discounts and deals from the banking sector. The festive period is assumed to be an auspicious occassion when most people tend to make a larger number of high-value purchases. Looking to make the most out of an infused optimism among citizens, many banks have announced competitive interest rates for loans among other things in order to boost credit availability.

State Bank of India

The country’s largest public lender, State Bank of India (SBI) has announced home loans at interest rates as low as 6.70%. This will hold value irrespective of the loan amount. The bank has also waived processing fees applicable on loans during the festive period to cash in on the increasing customer confidence amid a weaking impact of the Covid-19 pandemic.

Previously, borrowers availing loans above Rs 75 lakh were to pay an interest of 7.15% to the bank. But SBI has considerably reduced the home loan rate to 6.70%. This indicates a direct savings of 45 bps, that is, borrowers have the chance to save on lakhs in interest payment.

“The 6.70% home loan offer is also applicable to balance transfer cases. We believe zero processing fees and concessional interest rates in the festive season will make homeownership more affordable,” SBI was quoted as saying.

Besides, SBI Card is also luring consumers with 10% cashback (up to Rs 10,000) for mobiles, consumer durables, laptops, kitchen appliances, home décor and furnishing,  fashion and lifestyle related purchases. This will be applicable if you shop from a leading domestic e-commerce shopping site.

This offer will, however, not be applicable on online spending in certain categories like insurance, travel, wallet, jewellery, education, healthcare and utility merchants.

Kotak Mahindra Bank

The private lender has also reduced the interest rate on loans to 6.50% from 6.65 %. This exclusive offer on home loans will be applicable from September 10 to November 8. The bank clarified that offer rates will apply to both fresh homes loans and balance transfers.

Bank of Baroda

The PSB has also informed customers about the lowered home and car loan interest rates during the upcoming month. It is offering 0.25% discount on the existing applicable interest rate for home and car loans. The new rates for home and car loan will start at 6.75% and 7% respectively.

“With the introduction of these retail loan offers for this festive season, we intend to bring festive cheer among our existing loyal customers and also offer new to bank customers an attractive proposition for availing home loans and car loans who will be benefited from lower rates and waiver of processing fee on offer,” it said in a statement.

ICICI Bank

The bank also announced the launch of its festive bonanza recently. The bank is offering attractive benefits to retail and business customers on various banking products and services starting October 1, 2021.

Customers can avail of interest rate (repo rate linked) starting from 6.70% and processing fee starting from Rs 1,100 on fresh home loans and balance transfer of home loans from other banks. For auto loans, the lender is offering  EMIs starting at Rs 799 per Rs 1 lakh loan amount for a tenure up to 8 years.

Check out the official websites of various banks to stay updated on the dicount offers on display during the festive season. However, make sure to not fall for any traps and fraudulent claims of ‘too good to be true’ deals.