Heavy discounts await the customer taking a car loan this festive season. Discounts offered can be a dip in interest rates or lower processing fees and documentation charges.
These festival offers have been given by many PSU banks like IDBI Bank, Bank of Baroda, Punjab National Bank (PNB), Allahabad Bank, UCO Bank and Bank of India. The offers would be applicable till year end for most of them. Festive season schemes are likely to be launched soon by other banks too.
Although base rate has been hiked by many banks, car loan rates remain unchanged in order to wade in line with customer sentiment of heavy car purchases this festive season.
October-November period is expected to see a surge in personal loans, car as well as home loans considering the Indian idea of considering this period as auspicious for buying home, car and other assets.
IDBI Bank has offered discount of 0.5 per cent in interest rate in auto loans and 50 per cent reduction in processing fee for smaller cars. Interest rates on car loans have also seena 0.5% dip for Punjab National Bank. While Allahabad Bank is giving 1% waiver on loans, UCO Bank has offered waiver on processing and documentation charges.
"During the festival season, especially on Dussehra and Diwali, many people buy vehicles and homes. It is considered an auspicious time to buy new things. So, we have come out with festive schemes. It is also a good time to attract new customers," said RM Malla, CMD, IDBI Bank.
Bank of Baroda has also waived off processing charges on car loans expecting the surge in demand in this category, said a senior official of the bank.