• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

C.J. Punnathara

Kochi Aug. 23

WAIT before you rush to your bank to ditch your floating rate loan accounts and plumb for a fixed rate system, even at the cost of a stiff service charge in the bargain. Despite the inflationary spiral racing to eight per cent levels, interest rates for credit portfolios have still not bottomed out.

If you wait, you might still be in a position to strike a fresh bargain with State Bank of India this Deepavali or the Pooja Festival season.

Before extending the offer to other States and other festivals, SBI has come out with an Onam offer for the denizens of Kerala, which offers up to 100 basis points reduction for cars and other loans from the bank.

"After evaluating the success, the offer will be extended to other States and for other festivals too," sources in the bank said.

The reduced interest rates are offered for loans sought during the Onam season falling between August 16 and 28. The bank expects an overwhelming response; it has a left a leeway for the final clearance of the loan till October 31, making it mandatory that an in-principle clearance should have been obtained during the festive season.

Interest rates for housing loans have been dropped from 7.5 to 7 per cent for a five-year tenure, from 8 to 7.5 per cent for 5-15 years and from 8.25 per cent to 8 per cent for 15-20 years for this period.

For used car loans, the rates have dropped from 9.25 per cent to 8 per cent for cars up to three years old, from 9.25 to 8.5 per cent for cars up to five years old and from 9.75 per cent to 8.75 per cent for cars up to seven years old, Mr P. Sukumar, Assistant General Manager, SBI Trade and Finance Cell, said.

More Stories on : Consumer Finance | Strategy | Public Sector Banks | Kerala

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Banks filing monthly reports on agri-lending

Copyright © 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line