State-owned Indian Bank today launched special home and auto loan schemes to cash in on the festive fervor.
Under the special combo scheme, customer availing home loan will be charged base rate and will also be offered vehicle loan and consumer durable loan at the discounted rate of 10.20 per cent, Indian Bank Chairman and Managing Director T M Bhasin said in a statement.
To boost demand for retail credit, the bank has also decided to waive processing charges for all retail loans, he said.
This offer is for a limited period, he added. Yesterday, 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 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.
“This amount (Rs 14,000 crore provided for capital infusion in Budget) will be enhanced sufficiently. The additional amount of capital will be provided to banks to enable them to lend to borrowers in selected sectors such as two-wheeler, consumer durables, etc at lower rates in order to stimulate demand,” a finance ministry statement had said.
It further said the additional fund infusion would help in combating slowdown and boost output.
Source: The Economic Times