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February had a lot of pleasant surprises for the personal finance reader. Either it was a drop in interest rates for housing loans or a couple of good bargains on the automobile loan front. Retail banking saw a lot of changes and for those interested in travelling, Air India came off with some irresistible deals. While the latter as well as the auto loans have a cut-off date, the rest are permanent changes.

Housing loans

Interested in going in for a housing loan? Good timing, for two reasons. With real estate rates seemingly bottoming out, it makes good investment sense now. Secondly, housing finance companies are lowering their interest rates. CanFin Homes, LIC Housing Finance and HDFC have all decreased the cost of borrowing. However, it is not an across the board slashing of rates. It is totally dependent on the slabs. Consequently, some slabs continue to remain unchanged. And the maximum that the rates have been lowered by is one per cent.

 

Take the case of HDFC. This housing finance company has six slabs. Rates on three of them have been lowered. Loans above Rs 1 lakh and upto Rs 2 lakh now cost 16 per cent (down from 16.5). Above Rs 2 lakh and upto Rs 5 lakh is 16.5 per cent (down from 17). The third slab to be changed was that for sums above Rs 5 lakh to Rs 10 lakh. Unlike the other two slabs which have been lowered by 0.5 per cent, this one has been lowered by one per cent. So you can now have it for 17 per cent as against the earlier 18 per cent.

But do remember, all the rates are applicable only for those taking new loans. If your loan has been partially disbursed or totally disbursed, you cannot avail of the fall in rates.

Automobile finance

Mashreq Bank: Hats off to them. A new entrant not only in the retail banking arena but also in the competitive field of auto finance, this bank is giving competitors a run for their money.

The bank has two new schemes to finance the Cielo and the Opel Astra. And, according to the banks calculations, you can save around Rs 70,000. But to avail of such a discount, the buyer has to opt for a five-year loan which amounts to 85 per cent of the cost of the car (Mumbai price). The Opel Astra costs Rs 7.82 lakh while the Cielo is Rs 7.30 lakh.

Both these schemes offer what is known as the relationship reward which is nothing but a rebate. In the case of the Opel Astra it works out to Rs 66,517. In the case of the Cielo it amounts to Rs 54,000.

The service charge for the Opel Astra is slashed by 50 per cent. So you end up paying just Rs 5,000, not the full charge of Rs 10,000. In the case of the Cielo it works out even better. The entire service charge of Rs 10,000 is waived. Finance for the Cielo will also get you an incentive of Rs 8,000.

So the total savings in the case of the Opel Astra works out to Rs 71,517 while in the case of the Cielo it amounts to Rs 72,000.

The interest rate works out to be around 21 per cent per annum on a monthly reducing balance. You have till March 31, 1997 to make up your mind.

Standard Chartered Bank: Heres another aggressive player. Potential Maruti 800 owners can check this out. You have the opportunity to avail of 100 per cent finance for your car. The EMI for a three-year loan with 100 per cent finance amounts to Rs 3,595. With no security deposit, the only condition is that four EMIs be paid in advance. So the rate of interest works out to 22.75 per cent on a monthly reducing balance. The bank claims to deliver the Marutis instantly, hence the scheme is open only until the stocks last.

Retail banking

Times Bank: Aiming to become a prominent player in the consumer banking game, this one is going all out to woo clients. The bank now offers customers the facility of paying their telephone bills.

If you are a TimesBank account holder just visit your bank and fill in a form. The bank will get in touch with MTNL and ensure that all your telephone bills are sent directly to the bank and the amount debited from your savings account. What you will receive is a confirmation. The only condition being that you should have paid at least three bills on your own prior to this.

Punjab & Sind Bank: This one claims to have reached a new high in customer service. Instant transfer of funds can be availed at 13 centres. Check to see if your branch falls within these areas: Mumbai, Chennai, Calcutta, Amritsar, Patiala, Jalandhar, Chandigarh, New Delhi, Meerut, Jaipur, Bhopal, Lucknow and Guwahati. And the icing is that this will not cost you extra. The same charges that apply to nationalised banks as per IBA guidelines will hold good (which means a minimum of Rs 10 and going right up to Rs 3,000).

HongkongBank: Depositors of the SmartMoneyAccount can now take an overdraft of 90 per cent of their deposit from March 1, 1997. It is 75 per cent as of now. That means, if you have deposited Rs 1 lakh in this account, you can withdraw upto Rs 90,000.

The rate of interest continues to be given on the entire amount (Rs 1 lakh). But on the Rs 90,000 that you have withdrawn, you will have to pay the bank 2.5 per cent over and above the effective rate. This is only if the overdraft is less than or equals Rs 2 lakh. If the overdraft outstanding is over Rs 2 lakh, then it turns out be an expensive deal. The interest that you will have to dish out will amount to the banks prime lending rate as well as interest tax.

Dena Bank: Not content to play onlooker, Dena Bank has introduced a Smart Card. No this is not an ATM card, it is an electronic purse-cum-passbook. Heres how it works. You should have a minimum amount of Rs 5,000 in your savings account. The card will cost you Rs 500 and annual fees of Rs 300 are levied then onwards.

On entering any branch of Dena Bank and presenting this card, you will be in a position to conduct banking transactions such as cash withdrawals, deposits, statement of accounts and balance enquiry. And this holds true irrespective of whether you have an account in that specific branch or not.

Hang on, as of now this facility is only available in Mumbai. And that too in select branches: Malad (W), Bandra (W), Ghatkopar (E), Vashi, Manishnagar, Mahim, Gulalwadi, Napeansea Road, Thane and Sachivalaya Corner. The rest of the branches and the rest of the country will have to wait. For how long? The bank is mum on this one.

Travel

Thinking of travelling in the near future? Check out what Air India has to offer. Their two new schemes are definitely worth a second glance.

Travel in Twos: As the name suggests, travel with a companion to any of Air Indias international destinations ex-India and the discount is something to write home about. A hitch though, you will have to fly First or Executive class to avail of this. So while you foot the bill for your ticket, you get 90 per cent off on your companions IATA (one of two organisations to set fares, the other being the DGCA) fare. Great for those travelling on work. Get your company to book you on Executive class and take your spouse along on the discounted ticket.

Being a time-bound scheme, the ticketing has to be done on or before April 10, 1997 and your outbound and inbound travel completed by April 15, 1997.

Senior Citizens Bonanza: Read this only if you are 65 years or above. And, only if you plan to visit New York, Chicago, Europe, Hong Kong or Singapore. Book yourself a return ticket in Economy class and get these discounted rates. Interested? An identical validity period exists as for the Travel in Twos scheme.