All public sector union banks ought to search for new methods to offer loans for the purchase of consumer durables during this festival season as they must obey the order of the government. According to the last week statement of P Chidambaram, the Union Finance Minister, the government will allot more funds to PSU banks to make them offer more loans to retail sections on two wheelers and consumer durables at lower interest rates. In his statement, the Finance Minister included that these low interest loans will be offered to those who already availed other loans such as home loan, car loan, etc.
These subsidized interest rate loans will be offered to salary class people also who is maintaining their salary account in these banks. At present, the PSU banks offer loans for consumer durables at an interest rate of 15 % to 16 % for the bank’s non-consumers and at the rate of 12% for the existing consumers. In the same way, two-wheeler loans are provided with an interest rate of approximately 14 % to 18%.