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Federal Bank halves home, auto loan processing fees

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

Federal bank
Federal Bank on Tuesday said its net profit for the July-September quarter fell 32.88% to Rs161.28 crore compared to the same period last year, even as the lender saw a considerable rise in its provisions. (Source: Federal Bank)
Federal bank
Under the scheme, all the home and auto loan applications made till December 31 are being given a concession of 50 per cent on the processing fee, the Federal bank said in a statement. (Source: Federal Bank)

South-based lender Federal Bank today 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 per cent on the processing fee, the Federal 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 per cent 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 per cent top up loan on existing housing loans.

The bank today announced a 1 per cent 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.

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