Oriental Bank of Commerce Trims Home, Car Loan Interest Rates
Online, May 16, 2012 (Newswire.com) - Oriental Bank of Commerce (OBC) has revamped its home and car loan schemes as part of its efforts of ramping up its retail loan book and increase market share in these varied segments. It is the new home loan scheme, which includes features like reduced interest rates, extended repayment terms, high loan eligibility for high ticket loans along with loyalty bonus of 0.25 per cent concession in interest rates for its certain current clients.
OBC has also reduced its benchmark prime lending rate (BPLR) from 15 per cent to 14.75 per cent. Base rate can be defined as the rate below which a bank cannot lend. Now car loans from OBC will be available at bank base rate plus 1 per cent, i.e., 11.5 per cent for repayment period of three years, as compared to earlier loan rate of 12.65 per cent. In case of repayment beyond three years, car loan interest rate is pegged at base rate plus 1.25 per cent, i.e., 11.75 per cent as compared to 13.15 per cent earlier. As home loan rates are linked to base rate, borrowers will get a chance to gain on the latest cut in base rate along with the general reduction in home loan interest rates.
For example, housing loans up to Rs 30 lakh for tenure of 15 years will be available at 10.5 per cent in case of certain loyal captive customers. For normal customers, home loan will be available at 10.75 per cent. As said by Mr. S.L.Bansal, Chairman & Managing Director of the bank "We believe our new home loan scheme will help in improving demand for home loans. As the economy is in a stress, therefore, we are interested in giving a boost to retail assets so that housing loan demand will go up in a big way." Moreover, the bank is also offering a bundle of concessions to its current savings bank, cash credit customers and home loan and car loan borrowers. "Usually, a public sector bank sells 1.5 products to their customers. We aim towards scaling it to 3 products so that our operational costs will come down. The saving in turn will be passed on to customers."
About Oriental Bank of Commerce
Founded in 1943, Oriental Bank of Commerce is one of the leading public sector banks in India. It has started its journey under its founding Father, Late Rai Bahadur Lala Sohan Lal, who was the first Chairman of the Bank. It operates in four different segments, which include treasury operations, corporate/wholesale banking, retail banking and other banking business operations. It aims towards becoming a customer centric, efficient bank with contemporary size, technology and human capital. It endeavors towards enriching lives across all different sections of society and is committed towards maintaining the highest standards of corporate governance. It works diligently towards providing finest banking services by upgrading human capital and infusing hi-tech technology, thereby it achieves total customer satisfaction. It is reckoned as the "Best Bank" in the banking sector on all different efficiency parameters.