Public sector banks are offering attractive combo offers to capture a large share of customers purse. Bank like Union Bank of India, Dena Bank and Indian Bank have recently launched combo offer where the banks will offer a lower rate of interest if customers avail two loan products from them.

For instance, Union Bank of India has a combo offer where existing home loan customers are offered two wheeler loan and consumer loan (with a ceiling of Rs 75000 per borrower) at 12.50%. These discounted rates would also be offered to borrowers who are employees of bank's borrower from MSME (medium and small micro enterprise) segment or have a salary account with the bank. However, without the combo offer, the bank would be charged 15% on two wheeler and consumer durable loan.

Similarly, Indian Bank has decided to offer 10.20% interest rate if the customer avails home loan along consumer durable loan or vehicle loan or all three of them.

If the customer wants to avail in vehicle loan the rate would be 10.70% or only two wheeler loan the rate would 12.95%. Further for limited period the bank has decided to offer home loan at 10.20% irrespective of the loan amount. Earlier, the bank would charge 10.45% on home loan above Rs 75 lakhs and 10.20% for below Rs 75 lakhs.

Officials from the banking circle said that the move to offer combo package is aimed to push retail lending since they are seeing low demand for corporate loans.

Dena Bank giving a combo offer on car loan with home loan at 10.25% for loans upto Rs 1 crore and 10.50% for loans above Rs 1 crore.

The bank said that even without the combo offer, it has reduced rates car loan to 11%, down 100 basis points for the festival offer. Dena Bank has pegged consumer durable loan with home loan at 11.75%.

The combo offers comes at a time when several PSU banks like State Bank of India, Punjab National Bank and IDBI Bank, reduced rates for auto loan and consumer after being nudged by finance ministry.


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