Financiers gear up with festive season offers

CHENNAI: Financiers are promising spend more, gain more with a slew of exciting offers. This Diwali, banks, NBFCs and microfinance lenders are coming together to bring in a bonanza from trips to exotic locations to high-end mobiles to EMI holidays.
Another reason the festive season augurs well for consumers is the Reserve Bank of India's ease of lending rates on Tuesday to infuse more liquidity into the system.RBI’s 25 basis point cut prompted public-sector and private banks like ICICI Bank and Indian Overseas Bank to lower their marginal cost of funds based lending rate (MCLR) by 5 basis points. Micro-finance players like Asirvad Microfinance and NBFCs have also lowered their interest rates ahead of the season; making for a cash-flush Diwali and higher consumer spends.
At ICICI Bank, ratcheting up your online buys could mean a bouquet of prizes. “Our top 3 spenders stand to win an all-expenses paid trip to Dubai. In the run-up to Diwali, we will be looking at weekly high spenders and they have a chance to bag an Apple Macbook Air. We also have contests on a daily basis and hourly basis, our customers who swipe their cards the most get a Samsung Galaxy Tab or Skullcandy headphones,” says an ICICI bank spokesperson.
On ICICI debit and credit cards, high spenders every day could win a brand new Mahindra KUV. On an hourly basis, high spenders might bag a Kindle Paperwhite. Every minute, ICICI plans to give out Zebronics Bluetooth speaker for the highest spender that minute. And to ensure customers get more incentive to spend, ICICI bank rewards the next 15 days of shopping with KILLER accessories on first transaction, FILA bags on the fifth and a Provogue lifestyle product on their 10th transaction.
At Kotak Mahindra, EMI holidays have been announced in certain loans segments. “One entire month's EMI gets waived off. We are offering competitive rates on home loans in addition to waiver of processing fees. For people purchasing vehicles, we are offering loans through Kotak Mahindra Prime at attractive terms," says Shanti Ekambaram, president — consumer banking, Kotak Mahindra Bank. "We've also tied-up with fashion e-tailer with Myntra for additional 10% cashback till Oct 6,” she adds.
Non-banking finance companies like Fullerton India are offering a 0.50% waiver on personal loans. "We are also giving a 50% waiver on processing fees only for our women customers. We'll also be giving surprise gifts for high-ticket loans of Rs 3-4 lakh," says Rakesh Makkar, executive vice president, Fullerton India.
To boost spends among lower-income households, microfinance institutions like Asirvad Microfinance have also slashed their interest rates this festive season. “We have dropped rates by 300 basis points in the last 18 months and have now come down to 23% from 26% in April 2015,” says S V Raja Vaidyanathan, founder and CMD, Asirvad Micro Finance Pvt Ltd.
“Consumer spending is expected to be higher this year with good rains, higher penetration in rural markets and the easing of rates. Highest spends are expected in the two-wheeler and personal loan category,” says A Vidyasagar, chief operating officer, Lakshmi Vilas Bank.