Finally, the sale season is back!
I’m sure you are equally excited as I am for this sale season. Well, apart from us, do you know who else is excited? It’s banks!
Why?
The reason is obvious: we all will swipe our credit cards, and you know who will be profitable in the deal – it’s Banks!
Apart from this, Onam just went by, and it’s just a month before Diwali, and this is the perfect time to pre-book things like bikes, cars, etc. So, you might think of taking a loan.
Hence, many banks are up with lucrative offers to lure customers so that you shop to the fullest and banks can make profits in abundance.
What’s Happening?
Renowned banks like HDFC Bank, Axis Bank, and ICICI Bank are offering a spectrum of offers to their customers for this sale season as well as the festive season.
- HDFC Bank recently launched 12 discount offers under its Festive Treats campaign in Kerala, valid till September 30, 2022. These offers are available on personal loans, Xpress car loans, business loans, two-wheeler loans, etc.
- Axis Bank and ICICI bank offer a flat discount of up to 10% (on a specific translation value) on using their credit card for online shopping during the sale season.
- The buy now, pay later option is available for users. You can buy items and pay in the next month or through flexible EMIs.
- ICICI Bank started a Monsoon Bonanza offer on its website where customers can shop for a range of products with higher discounts by shopping on Flipkart, buying an iPhone 13 or booking on Make My Trip.
These offers are introduced to lure customers into shopping more during this season. But, this is not the entire story. If these banks are ready to give out loans, they must also attract depositors.
Banks Are Chasing Depositors
SBI has launched an offer named the Utsav deposit scheme, which offers an interest rate of up to 6.10% per annum for a tenor of 1,000 days.
Axis Bank has also started an FD for 75 weeks, under which you can invest a certain amount and earn an interest of 6.05%.
Canara Bank and Union Bank are other PSU banks offering similar fixed deposits.
Rise in Credit Growth
According to Moneycontrol, credit growth has been the highest in the past ten years.
How Will It Affect Customers?
Even though credit cards and personal loans are unsecured, they hold the highest risk. Hence the interest charged on them is also high.
Offering flat discounts and cashback is a strategy to attract customers. So, as a wise buyer, avoid impulsive purchases through credit cards and buy now, pay later schemes.
What’s Next?
Even though banks are putting their best efforts into attracting customers by coming up with offers, high inflation and resulting rate hikes are peeking from the corner. This might hamper the loan-taking ability of customers.
That’s it for today. We hope you enjoyed reading the newsletter.
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