Syndicate Bank cuts home, auto loan rates

Targets additional lending of Rs 3,000 cr during a special festival offer till Jan 15, 2013

Manipal-headquartered public sector lender Syndicate Bank is looking at increasing its retail loan book by additional Rs 3,000 crore during a festival offer between September 15, 2012 and January 15, 2013.

“We have launched launched a special festival campaign for housing and vehicle loan borrowers with concessional rate of interest and waiver of processing fee,” H N Vishweshwar, general manager, retail, Syndicate Bank said.

The Bank is offering a reduction ranging between 0.25% to 1.10% on its housing loans for different loan amounts and tenors. It is now charging 10.50% rate of interest for loans up to Rs 25 lakh for a repayment period of up to 25 years, 10.75% for a loan amount of above Rs 25 lakh and up to Rs 75 lakh for a period up to 25 years. For loans above Rs 75 lakh with a repayment period of up to 25 years, the bank would charge 10.90%.

“Presently, our housing loan portfolio stands at Rs 11,000 crore as on September 30, 2012 and we are looking at a new business of about Rs 2,000 crore during the festival offer ending January 15, 2013,” Vishweshwar said.

The Bank has waived processing fee for all housing and vehicle loan borrowers during the festival offer.

Syndicate Bank has also reduced the rate of interest on its vehicle loans to 10.75% from 11.25% earlier. It will finance up to 95% of the vehicle cost as against 90% offered by some of the peer banks, he said.

Through this festival offer, the bank aims to lend an additional Rs 1,000 crore under vehicle loans. Its current portfolio of vehicle loans stands at Rs 1,475 crore.

The Bank’s overall retail loan book including MSME loans stands at Rs 19,000 crore as on September 30, 2012, he added.