HNB cuts rates on personal finance products ahead of Dec. season
View(s):HNB PLC on Thursday announced that it would be reducing interest rates on all of its core personal financial products – spanning leasing, housing and personal loans.
Following the rate cut, interest rates on personal financial service products will start as low as from 13.25 per cent for professional category, for housing purposes. On new vehicles, the bank currently offers up to 70 per cent of the total market value as a loan on registered vehicles and 50 per cent of the market value, according to a bank media release.
HNB Head of Personal Financial Services Viraj Mendis said that in recent times there has been a significant demand for loans, particularly in the demographic of young professionals, many of who are seeking to buy a car, start a home, for professional studies or for any other investment activity.
He added that Sri Lanka’s increasing affluence was also beginning to be demonstrated through increased demand for personal loans aimed at funding education and international travel, which the rate cut from HNB, is ideally timed to facilitate.
“At this time of the year, many foreign universities start to open up applications; hence we tend to receive even greater applications for education loans. Similarly, travel loans also tend to spike towards the end of the year, with travel companies often offering discounts for pre-booking targeting the first and second quarters of 2018,” Mr. Mendis explained. He further noted that HNB will continue to offer these loans on fixed or floating rates, depending on the requirements and preference of each customer while further discounts and special rates would be rolled out to customers in the coming months as part of the bank’s festive season campaigns.