Bangalore: If you need bank loans for buying a car and a home, then approach a PSU bank which will sanction you a car loan while providing a home loan with no processing charges, reports ET.

UCO Bank, a Kolkata-based lender, has come up with several cheaper loan options. A combo offers say, “You can take a car loan and get a home loan with no processing charges”. There are standalone offers too: '50 percent cut on processing charge on home loans', '100 percent cut on processing charges on car loans'.

"We have noticed that a segment of customers prefers to take home and car loans together. We have lined up the combo scheme for them. The design of the scheme (is such that it) will not put additional stress on customers or the bank's asset quality. In any case, we lend only after we are certain about a customer's repayment capacity," said UCO Bank CMD Arun Kaul, as quoted by ET.

Along with UCO bank, the other PSU banks providing the cheap loan offers are State Bank of India, Union Bank and United Banks. There are some private banks too such as HDFC Bank, ICICI Bank which have come up with loan offers similar to UCO bank.

Pratip Chaudhuri, Chief Managing Director of SBI said, "The corporate pipeline is pretty weak for term loans, so we are trying to increase our coverage in the retail space. No matter what the interest rate for the corporate sector, there is hardly any demand for term loans.”

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