The Hindu : Kerala / Thiruvananthapuram News : It's loans all the way ... for anything and everything

Online edition of India's National Newspaper
Friday, Jul 15, 2005

Kerala

Kerala - Thiruvananthapuram

It's loans all the way ... for anything and everything

Special Correspondent

THIRUVANANTHAPURAM: These are glorious times for those who believe in the dictum `borrow as much as you can, for you repay in devalued currency.'

For never has the policy on loans of banks been as liberal and colourful as it is now. If you have the repaying capacity, the banks offer you loans for anything and everything from pursuing higher education to seeking employment abroad and from construction and improvement of homes to buying two-wheelers and cars. Gone are the days when the banks used to give loans for only limited purposes. The present list of the loan products of banks is pretty extensive and dynamic. It keeps increasing with the demand for loans for newer purposes. Even if your requirement is for exotic purposes which do not find place anywhere in the long list, there are still several ways out. And they come in the form of general purpose loans, festival loans, personal loans and loans against securities such as NSC. Do not lose heart merely because you are pensioner. Many banks have special schemes for giving a helping hand to senior citizens.

The State Bank of Travancore has a wide range of loan and deposit schemes to suit the varied needs of its customers. Following are some of the schemes.

Housing loans

Loans up to a maximum of Rs. 50 lakh are available with repayment periods extending up to 20 years. The interest rates, which are calculated on a daily diminishing balance, start from a low of 7.50 per cent per annum. There are no processing charges or any hidden charges. Loans are available for construction of a house, purchase of a ready built house and extension to an existing house. The bank also has schemes to furnish houses and for repairs and maintenance.

Car loans

The bank extends finance for purchase of new as well as used cars. Interest rates start from an attractive 7.50 per cent per annum and the interest rates here also are calculated on a daily diminishing balance. The bank finances 85 per cent of the on-road cost of the vehicle, which will include the insurance and the life time tax. The bank also has a scheme to take over loans available from other financial institutions and also to reimburse the expenses incurred in the purchase of a new car. The bank has waived processing charges for the car loans.

Education loans

The bank through its Education Loans extends a helping hand to the students to pursue their studies in schools/colleges. Loans up to Rs.10 lakh are available for studies in India and up to Rs.15 lakh for studies abroad. The repayment is to commence one year after the completion of the course or six months after the student gets a gainful employment, whichever is earlier. There is no processing charge for the loans.

The newly-introduced SBT Nurses Suvidha Loan Scheme for nurses going abroad has proved to be an instant hit. The immense opportunities available in Europe, United States and Middle East for qualified nurses has prompted the bank to launch the scheme. Loans up to a maximum of Rs.3 lakh is available to meet the migration expenses abroad which will include registration expenses, test and interview expenses, agency commission, visa charges, air fare, etc.

The bank also has the Suvidha Mortgage Loan scheme - a general purpose loan up to a maximum of Rs.10 lakh, Festival Loans up to a maximum of Rs.50,000, Sahaaya Varasha Personal Loans, the thoughtful Prasanthi Loan for the pensioners, loans against various securities such as NSCs, etc.

The bank has set up Specialised Agricultural Development Branches (ADB) totally dedicated to agricultural advances. The bank has introduced the Kissan Credit Card Scheme, for the farmers to purchase agricultural inputs and meet other productive needs.

The bank is now into marketing of Life Insurance produces of SBI Life. The bank has also entered into an arrangement with the United India Insurance Company. United India's non-life insurance products are now available to various segments of customers through the SBT branches.

The bank has marketing tie-ups with the Maruti Udyog Limited, Hyundai Motors, SAME Tractors, Mahindra Tractors, etc., to finance the purchase of the vehicles of these companies with schemes to suit the needs of various customers.

Canara Bank

The Canara Bank provides a loan of up to Rs 1 crore for the purchase or construction of house or flat and up to Rs 7.5 lakhs for the repair, renovation or addition of buildings. The actual quantum would depend on the earning and repayment capacity of the person availing the loan. An individual can avail of four years gross salary or income as loan. For selective customers loans up to five years gross salary or income could be availed.

The floating and fixed rates of interest irrespective of amount for loans repayable within 5 years are 7.50 and 8 per cent respectively, repayable in over 5 years and within and inclusive of ten years are 8.25 and 9 per cent respectively and over 10 years is 8.50 and 9.25 per cent respectively.

The bank offers insurance cover, life and property and accident death to those who avail housing loan from it. It also provides a free Cancard, Visa or Master, with every home loan of Rs. 2 lakhs and above for the first years.

The Canara Bank's vehicle loan, Canmobile, is available to individuals and reputed firms and companies. Up to 90 per cent of the invoice value is given for new cars, 75 per cent of the value for used cars and 80 per cent of the invoice value or 15 months' net salary for two-wheelers. The interest for a period of 72 months for cars and 48 months for two-wheelers is 9.5 per cent. The EMI for Rs. 1 lakh comes to Rs. 1,824 for cars and Rs. 2,509 for two-wheelers. There is no processing charge.

The bank which is the official bankers to the entrance examinations is offering provisional sanction of educational loan to all the candidates appearing for counselling for admission to professional degree courses in all the three centres of the State this time.

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