No Processing Fees on Housing Loan if Availed with Car Loan

Combo offers are usually associated with pizzas & colas, or / televisions & sound systems. But public sector banks are pushing the envelope in retail lending with combo offers. Take a housing loan& get a car loan without processing fees, and many such offers.

It is a retail loan mela now, not like the one in the ’80s associated with the then junior finance minister Mr. Janardhana Poojary that nearly sank the system, but a voluntary drive by managements to compensate for sliding demand for funds from corporates.

The Kolkata - based lender UCO Bank, ‘No processing charges on housing loan if availed with car loan.’ There are standalone offers too: ‘50 per cent off on processing charge on housing loans… 100 per cent off on processing charges on car loans.’

Mr. Arun Kaul, Chairman and Managing Director, UCO Bank said, “We have noticed that a segment of customers prefers to take housing loan & car loans together. We have lined up the combo scheme for them.”

UCO Bank  is not alone in pushing retail loans aggressively, which has hitherto been the forte of private sector lenders such as HDFC Bank & ICICI Bank. State Bank of India (SBI) and its associates, Union Bank of India & United Bank of India are among the leaders in the retail push.

Mr. Pratip Chaudhuri, chairman, SBI. said, “The corporate pipeline is pretty weak for term loans and so, we are trying to increase our coverage in the retail space.No matter what the interest rate for the corporate sector is, there is hardly any demand for term loans.”

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