Federal Bank halves home, auto loan processing fees

Mumbai: South-based lender Federal Bank Monday announced a limited period offer to halve the processing fees for applications in the competitive home and car loans segments.

Under the scheme, all the home and auto loan applications made till December 31 are being given a concession of 50 percent on the processing fee, the bank said in a statement.

It said this is a festive period offer, which generally sees banks launch aggressive offerings to gain market share. It can be noted that with credit growth being at a multi-year-low of under 9 percent for the system, competition is bound to get very high.

"During this time (festive season) we normally find increased demand for home loans and car loans," its head for retail business, Babu K A, was quoted as saying.

Other bank customers who are keen to shift their loans to Federal Bank can also avail this offer, it said.

The offer is also extended to home loan overdraft product, it said, adding that the bank has also come up with 100 percent top up loan on existing housing loans.

The bank today announced a 1 percent interest concession for the first 1,000 customers who avail loans online against their fixed deposits.

"We expect a good number of logins pan India," Babu said.