Right after the State Bank of India (SBI) announced a waiver of processing fees, United Bank of India has decided to follow suit. United Bank of India has announced a waiver of processing fees in case of car loans, home loans and two-wheeler loans for attracting more customers. Banks in India are pulling out all the stops for garnering more customers and increasing their loan books ahead of the festive season. United Bank of India’s decision is not suprising based on the current market trends.
The home loan category has spurred rapid growth in retail loans as far as most Indian banks and financial institutions are concerned. Home loans have been the major growth drivers at a time when big-ticket project loans and other corporate loans have not been as robust as before. Banks are betting big on home loans to attain future growth and are offering customer incentives accordingly.
Affordable housing is expected to bring about a huge boom in the real estate sector and banks will also benefit from higher loans in the affordable category. Home loans are offered at 8.55% at United Bank of India irrespective of the size of the home loan and the tenor according to senior bank officials. 50% waiver on processing fees is also being offered by United Bank of India for its mortgage loans, gold loans and personal loans. This waiver will be offered till December, 2017.