IDBI Bank scheme woos home loan customers of other banks
Our Banking Bureau
10 October 2002

Mumbai: IDBI Bank has launched a marketing scheme that ‘incentivises’ home loan customers of other banks to shift to it.

Calling the scheme a “festival offer,” IDBI Bank managing director and CEO Gunit Chadha says: “Those who balance-transfer their housing loans to his bank will get to choose from among jewellery, consumer durables, gift vouchers and an all-expense-paid trip to South Africa next year to watch the World Cup cricket.”

Chadha adds: “Even with enormous fall in housing loan interest rates, a majority of the people who had taken loans prior to 2001 have not opted for lower interest rates. This inertia is mainly due to the paperwork involved. The scheme is aimed at overcoming the inertia and providing attractive incentives for customers to shift their home loan (to IDBI Bank).”

Customers signing up for the scheme will, however, also have to opt for prepayment penalty at the rate of 1 per cent per year for the outstanding balance and period. IDBI Bank head (operations) Kumar Subramanian says the scheme enables customers to encash upfront the savings that would have accrued over the years upon shifting to a lower equal monthly instalment.

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