To do away with the lacklusture credit situation in the market, public sector banks are planning to flood the market with attractive offers on home and car loans to pep up the market mood and improve the demand in both home loans and car loans segment.

PSBs have either already rolled or planning to roll discounts under various schemes. Private bankers are however waiting on the sidelines closely monitoring the response from the customers. These schemes would run from a month or two before the festive season which commences in September end to beginning of the next calender year.

The banks hope to capitalize on the consumer behaviour of buying cars and booking residences during the auspicious season. SBI lead the pack by reducing rates on home and car loans when RBI announced 1% cut in SLR last month.

Central Bank of India and Union Bank of India has waived off processing fees on home and car loans, while Central Bank of India has additionally cut rates by upto 50 basis points on such loans.

Banks are under pressure from both finance ministry and RBI to make home loans affordable and achieve credit growth targets.