SBI waives off up to 100% processing fee on car, gold, personal loans

With the festival season starting soon, banks are beginning to introduce their annual festive offers. The country’s largest bank, the State Bank of India (SBI), announced a waiver of up to 100 per cent of processing fees on car loans, gold loans, and personal loans on Monday.

In the second week of August, private sector lender ICICI Bank introduced the instant credit card for online shopping with a credit limit of up to Rs 4 lakh, based on pre-checked bureau scores.

ICICI Bank has said customers can use the card for availing of offers on shopping, travel and entertainment offered by its online partners during the festive season.

Punjab National Bank’s Monsoon Bonanza season has been running since June and it had waived processing fees for home and auto loans.

City Union Bank is in partnership with Mastercard to offer the instant credit card with a credit limit of Rs 3 lakh.

“There could be some minor rate cut action in the coming days during the festival season because banks are chasing retail customers aggressively. The inaction in credit growth from the corporate sector may force their hands,” said a banker.

Customers, therefore, could wait for a while before making any buying decision. At present, the fee cut does not translate into a significant gain. For example, SBI’s processing fee for car loans, which has been waived, stands at just 0.5 per cent of the loan amount. That is, a minimum of Rs 450 and a maximum of Rs 9,100.