Banks Nationwide are Offering Festive Offers
With the festive season here, banks are providing amazing offers to its customers. From cashback to Home Loan Offers, there is an array of offers provided by banks throughout the country. Merely following the behavioral pattern of the people during this season, banks have made it a little less harsh on the pockets of their customers by offering schemes that help people shop. Whether they are shopping for Home Loans or electronics, banks have an offer for virtually every kind of consumer.
Axis Bank to Waive Off 12 EMIs
Economical housing is becoming more and more accessible to a several individuals, and is rapidly going to grow in the coming years. And, several banks in the country have taken advantage of this indicator and released incredible festive offers this season for Home Loans. Axis Bank is one amongst the several players in the country to have revised their existing Home Loan offers.
The Shubh Aarambh loan by Axis Bank in an attempt to capture a larger market share in the ‘Affordable Housing’ sector this festive season. As of June 2017, home loans made up an enormous 44% of the Rs.1.68 trillion retail portfolio of Axis Bank.
Axis Bank’s new Housing Loan product, Shubh Aarambh, is designed to help borrowers save up to 5% on their Home Loans, including principle and interest. If we take into consideration that the interest rate on the Home Loan is fixed for the whole year at 8.35% over the entire tenure of 20 years, a borrower of the loan will see savings of close to 5%. The bank also promises to waive four EMIs for all Shubh Aarambh loans that goes up to Rs.30 lakh every 4th, 8th and 12th year of the Home Loan repayment. A missed EMI payment can however void this beneficial offer.
Furthermore, if the rate of interest happen to go up during the tenure of the loan, a borrower can shift to another bank without any penalties on the benefits availed.
These waivers that Axis Bank offers will make Home Loans cheaper to a great extent. At present, a borrower can save close to Rs.3.09 lakh if the following fact is considered. He/she takes a loan of Rs.30 lakh for a term of 20 years. And, although the interest rate is fixed at 8.35%, effectively, the rate that a customer only pays is 7.67% considering that the rates are fixed and 12 EMIs will be waived off.
While several other banks and lenders in the counter also provide Home Loans for up to Rs.30 lakh at the same interest rate of 8.35%, they do so under the floating interest scheme where the rate of interest keeps changing throughout the tenure of the loan. Therefore, there is a definite risk of the interest rates mounting over the 20 year period that one must take into consideration before opting for a floating rate scheme.
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One thing to keep in mind is that the borrower must stay with Axis Bank for the entire tenure of 20 years. Nevertheless, it hardly makes sense to shift to another bank after a while as most lenders typically design the repayment scheme in such a way that the interest on the loan is collected initially, in the first few years of the loan, and the principal later on, during the subsequent years of the loan. Eventually it comes to a point where the principle and interest is at parity with each other. At this point, and maybe even slightly earlier, it is illogical to switch loans as you have already paid off most or all of the interest levied on the loan.
In the occasion that the borrower chooses to pre-close or make a pre-payment on the home loan availed, the bank will still waive off the total EMIs as scheduled and adjust the balance amount accordingly.
The bank has advertised their rate of interest to be 8.35% currently. And, it is rational to speculate slight variations in the interest rates depending on customer profile, the difference is marginal and often negligible. All rates on the Shubh Aarambh loans range from 8.35–8.45%.
ICICI Bank Offers Rs.10,000 as Cashback
In the season where the demand for Home Loans surge, ICICI Bank is trying to capture this market by offering a cashback of Rs.10,000 on new Home Loans availed. Irrespective of the amount of Home Loan, the bank promises to payback Rs.10,000 to the Home Loan borrower once he / she spends Rs.30,000 from their credit or debit card. This offer is valid from the 1st of September to the 30th of November. In case of debit card, the amount will be credited to the card holder’s account. But when it comes to credit cards, the amount of Rs.10,000 will be reduced from the outstanding balance account.
HDFC Bank to Offer a 10% Cashback
HDFC Bank is offering a 10% cashback on all purchases made on Amazon us a HDFC debit or credit card. While the maximum limit on the cash back is Rs.1750, a cardholder must at least purchase merchandise for Rs.5,000 to avail this offer. This offer is valid from September 21st to the 24th, and the cashback will be credited on the 24th of December, 2017.
State Bank of India is Offering a 10% Cashback
Just like its competitors, the nation‘s biggest lender is offering a 10% cashback using the Buddy Card. The Buddy Card is a virtual prepaid card that is linked to the SBI wallet and replicates a debit card. Any purchases or payments made through this card on various e-commerce sites will attain a customer a cashback of 10%. However, it must be noted that the minimum transaction value has to be Rs.100 and one can avail a maximum cashback of only Rs.50. The cashback amount will be credited to the buddy wallet account within five working days. This offer is valid from September 15 to October 31st.
State Bank of India is also offering the same cashback scheme on recharges and bill payments that are made through the SBI Buddy Wallet.
