Many banks which were planning to raise interest rates on home loans are now thinking of deferring the time for doing so in order to cash maximum benefit from the festive season starting from October.

The second quarter monetary policy review saw RBI raising policy rates again and with it started plans by banks to raise loan rates too.

However, festivals like Dussehra and Deepawali in the coming two months have made them rethink their plans as there is a huge surge in demand for loans in all retail segments like personal, car and home.

"Banks may not hike home rates immediately since sales are expected to pick up soon after the Pitr Paksha is over," said Oriental Bank of Commerce CMD TY Prabhu.

The largest lender of the country, State Bank of India is planning to extend the tenor of its teaser home loan scheme which is going to end in September.

PNB has also come up with festival offers on home loans. Corporation Bank has also introduced special home loan scheme as festive offer.