A recent press report said that customers looking for attractive financing options for home loan or car loans during the season might be in for a disappointment as banks are either delaying their decisions to announce special schemes for festive season due to uncertainty over interest rates or have decided against offering interest subsidy on such schemes.
Mr. R. K. Bansal, Executive Director, IDBI Bank, said, that it looks unlikely that banks will come out with special offers this year due to the present economic conditions and that the has not yet made a decision regarding the offers.
Mr. Kamlesh Rao, Executive Vice-President (Personal Finance and Mortgages), Kotak Mahindra Bank said that the banks might prefer not to offer interest rate subsidy but can make offers relating to reduction in service charges and waiver of prepayment penalty.
Reports said that Allahabad Bank has announced its festive scheme by offering 1-1.5 per cent interest rebate on various retail loans. The offer, however, will be valid to select customers. Mr. J. P. Dua, Chairman and Managing Director, Allahabad Bank said that the loans will be offered to salary accountholders or will be linked to the ca.sh flows of an individual.