on Friday Kotak Mahindra Bank reduced its rate of interest on home loans to 7 per cent, at par with market leader SBI's offering. The city-headquartered lender also announced a slew of other offers, including loan processing fees waivers and faster online approvals on retail and agricultural loan products, as a part of the festive offers christened as 'Khushi Ka Season'.
It are often noted that credit growth is at a multi-year low of under 6 per cent despite tons of efforts to push lending by the authorities within the high liquidity environment.Analysts and bankers are flagging concerns over stress developing within the otherwise resilient retail segment amid the reverses faced by the economy, which is about to contract by nearly 10 per cent within the current fiscal year .
"The Indian economy is steadily moving towards normalcy and that we are seeing the first signs of the return of consumer confidence and demand," the bank's group president for consumer banking Shanti Ekambaram said.The new scheme are going to be for a month and can address a customer's needs starting from borrowing to shopping to payments to savings, she said.The bank said home loans are going to be starting at 7 per cent once a year which savings of up to Rs 20 lakh can accrue after all transfer cases, wherein a customer of a rival lender switches to the bank.
The effective borrowing rate for loans under Rs 30 lakh for SBI is at 7 per cent with a 0.05 per cent concession for ladies borrowers, as per its website.Kotak Mahindra Bank also announced halving of processing fees on car loans, two-wheeler loans, and borrowings for agri business, commercial vehicle and construction equipment finance, as per a press release .Further, customers opening new savings bank accounts will get a voucher of Rs 250 which may be spent on Flipkart or Amazon, as per the statement.
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