On the heels of industry leaders launching special loans to tap festival sales, the mid-size state-run lender Dena Bank today launched a loan mela under which it offers a 25 basis points discount on new home and auto loans, besides halving the processing fee.
The benefit under festival offer will be effective from October 1 to December 31, 2011, the bank said in a release.
"Dena Bank has reduced the interest rates on new housing loans and car loans by 25 basis points on the card rate. To give further benefit to customers, we have also reduced the processing on new loans by 50 percent from the existing one percent," the bank said.
Dena Bank's base rate stands at 10.70 percent.
A bank official said the rebate depends on the quantum and tenure of the loan.
Its prevailing lending rate varies from 11.20-12.75 per cent in case of floating home loans, while for the fixed rate loans it varies from 11.50-12.75 per cent.
For auto loans up to three years, its interest rate is 13.25 per cent and those above three years, it is 13.75 per cent, the official said, adding the 25 bps discount will be applicable on these rates.
In order to attract home loan customers, ICICI Bank, HDFC and LIC Housing Finance have recently launched dual interest rate products offering a fixed rate of interest to start with, which will be later aligned to the base rate as the loan
progresses SBI, the country's largest lender, has also extended 25 basis point concessional home loan scheme till December.
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