PNB & OBC cut interests on vehicles, consumer goods
9 Oct 2013 10:49 PM GMT
Within days of the Government promising more funds to PSU banks, two leading state-owned lenders Punjab National Bank (PNB) and Oriental Bank of Commerce (OBC) on Tuesday cut interest rates on auto and consumer durable loans by up to 2.5 percentage points to cash in on festive demand. The rate of interest on car loans has been reduced by over a percentage point to 10.65 per cent on a fixed basis, PNB said in a statement.
Similarly for two-wheeler, the interest rate has been slashed to 12.25 per cent while the rate on personal loans for consumer durables purchase has been brought down to 12.75 per cent on a fixed basis. These rates are 1 to 2.50 percentage points lower than the existing floating rates, it said.
Besides, it said, there will be a full waiver of upfront fee and documentation charges. In case of car loans, the bank will finance to the extent of 100 per cent of ex-showroom price of the car. The festival offer is valid up to January 31.
According to OBC, interest rates on commercial financing of four-wheelers (Auto & Taxis) has been reduced to 12 per cent from 12.25 per cent. Similarly, personal and consumer durable loans have been reduced by 0.25 percentage point to 12.50 per cent for government employees while for other employees it has been brought down to 13.50 per cent. The new rates would be effective from October 10, OBC said in a statement.
Last week the government had decided to provide additional funds to the PSU banks to enable them extend more credit to auto and consumer durables sectors to stimulate demand and combat the current economic slowdown.
The decision to increase the quantum of capital infusion was taken at a meeting between Finance Minister P Chidambaram, RBI Governor Raghuram Rajan and Economic Affairs Secretary Arvind Mayaram.
Similarly for two-wheeler, the interest rate has been slashed to 12.25 per cent while the rate on personal loans for consumer durables purchase has been brought down to 12.75 per cent on a fixed basis. These rates are 1 to 2.50 percentage points lower than the existing floating rates, it said.
Besides, it said, there will be a full waiver of upfront fee and documentation charges. In case of car loans, the bank will finance to the extent of 100 per cent of ex-showroom price of the car. The festival offer is valid up to January 31.
According to OBC, interest rates on commercial financing of four-wheelers (Auto & Taxis) has been reduced to 12 per cent from 12.25 per cent. Similarly, personal and consumer durable loans have been reduced by 0.25 percentage point to 12.50 per cent for government employees while for other employees it has been brought down to 13.50 per cent. The new rates would be effective from October 10, OBC said in a statement.
Last week the government had decided to provide additional funds to the PSU banks to enable them extend more credit to auto and consumer durables sectors to stimulate demand and combat the current economic slowdown.
The decision to increase the quantum of capital infusion was taken at a meeting between Finance Minister P Chidambaram, RBI Governor Raghuram Rajan and Economic Affairs Secretary Arvind Mayaram.
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