Home, car loans will get cheaper
4 years, 11 months ago

Home, car loans will get cheaper

Deccan Chronicle  

Mumbai: As expected, the Monetary Policy Committee of the Reserve Bank of India on Thursday unanimously voted to keep the policy repo rate unchan-ged even as predicting a higher inflation at 6.5 per cent in April-June quarter and a lower economic growth at six per cent in the next fiscal. In a bid to lower interest rates for housing, auto, and micro small and medium enterprise loans and push bank credit growth, the Reserve Bank of India Thursday relaxed the requirements for banks to maintain the cash reserve ratio for these loans. The RBI announced a new ECB-style long-term repo operations facility to give banks long-term liquidity by conducting term repos of one-year and three-year tenors of up to Rs 1 lakh crore at the policy rate. The central bank revamped the liquidity framework by dismantling quantitative ceilings for liquidity operations at the weighted average call rate versus one per cent of net demand and time liabilities; increasing scope to conduct longer-term variable rate repo/reverse repo operations exceeding 14 days and improving communications and transparency on liquidity operations.

Housing Credit Bank Loans Transmission Rate Rbi Banks Msme Repo Project Loans Monetary Transmission  credit  loans  transmission  bank  car  banks  repo  rbi  cheaper  monetary  rate  housing

History of this topic

RBI warns against spillover of unsecured loan stress
2 weeks, 1 day ago

RBI warns against spillover of unsecured loan stress

Live Mint  

Mumbai: Nearly a year after clamping down on exuberance in unsecured loans, India’s central bank has expressed concern about the stress in such loans spilling over to larger, secured loans. “Nearly half of the borrowers availing credit card and personal loans have another live retail loan outstanding, which are often high-ticket loans,” the Reserve Bank of India said in its …

Microlenders wake up to hangover after credit party
1 month, 2 weeks ago

Microlenders wake up to hangover after credit party

Live Mint  

Mumbai/Bengaluru: Microlenders that splashed out money to indebted individuals are now struggling to get it back, raising concerns that payment delays could show up on balance sheets soon. Leading microfinance companies including CreditAccess Grameen, Fusion Finance and Equitas Small Finance Bank have warned that many of their customers may be over-leveraged, after discovering that some have four or more active …

SBI hikes loan interest rates from today, EMIs for personal, auto loans to rise | Check details
6 months ago

SBI hikes loan interest rates from today, EMIs for personal, auto loans to rise | Check details

India TV News  

SBI loan: Taking a loan from the State Bank of India, the country's largest public sector bank, has become more costly today. It's important to note that EMIs for personal and auto loans linked to the MCLR will rise, while home loans tied to the repo rate will remain unchanged. SBI's new interest rates SBI has increased the one-month MCLR …

Good news for bank fixed depositors! RBI hints at further FD interest rate hike
1 year, 9 months ago

Good news for bank fixed depositors! RBI hints at further FD interest rate hike

Live Mint  

The Reserve Bank of India, in its monthly bulletin released on Tuesday, said the intensifying competition among banks to expand their deposit base may force banks to increase fixed deposit rates. After 250 basis points repo rate hike by the central bank in May 2022, banks have been in a race to increase deposit rates. The central bank bulletin said …

Home Loan, Car Loan EMIs to Increase as RBI Hikes Repo Rate by 35 bps; What Should Borrowers Do
2 years, 1 month ago

Home Loan, Car Loan EMIs to Increase as RBI Hikes Repo Rate by 35 bps; What Should Borrowers Do

News 18  

RBI MPC Meeting December 2022: The Reserve Bank of India has increased the repo rate by 35 basis points to 6.25 per cent in its December Monetary Policy Committee meeting. Atul Monga, CEO and co-founder of BASIC Home Loan, said: “An increase in interest rates will be felt especially by the new borrowers, existing borrowers will not usually be affected …

Mortgage borrowers and renters told to brace for big financial hit by December
2 years, 4 months ago

Mortgage borrowers and renters told to brace for big financial hit by December

ABC  

The full budget impact of the second most aggressive interest rate hiking cycle in the Reserve Bank's history is still months from being felt by millions of households. Key points: Economists are warning home loan customers have only felt the impact of the first RBA rate hike That's because there's a lag between when it announces a hike and when …

How loan EMIs, bank FDs could be impacted by RBI’s interest rate hike
2 years, 5 months ago

How loan EMIs, bank FDs could be impacted by RBI’s interest rate hike

Live Mint  

The Reserve Bank of India today raised repo rate by 50 bps to 5.40 per cent, thus reaching to pre-Covid levels. However, they said that RBI rate hike may become a costly affair for new loan borrowers and existing Repo Rate-linked long-term retail loans. Speaking on how one's retail loan's EMIs and bank fixed deposits will be impacted from this …

SBI Raises Minimum Home Loan Rate To 7.55%; Know Latest Lending, Deposit Rates
2 years, 7 months ago

SBI Raises Minimum Home Loan Rate To 7.55%; Know Latest Lending, Deposit Rates

News 18  

With India’s largest lender State Bank of India hiking its marginal cost of funds-based lending rate effective June 15, the minimum home loan interest rate has also been revised upwards. Here’s the latest home loan rates of SBI: The lowest interest rate on home loans that SBI is now offering to borrowers is 7.55 per cent per annum. SBI has …

Home Loan to Remain Cheaper: RBI Relaxes Loan-to-Value Rules till March-end Next Year
2 years, 9 months ago

Home Loan to Remain Cheaper: RBI Relaxes Loan-to-Value Rules till March-end Next Year

News 18  

In a move to make home loans cheaper, the Reserve Bank of India on Friday announced that it will rationalise the risk weights and link them to loan-to-value ratios for new home loans till March 31, 2023. Being a tangible asset and safe haven investment, people continue to invest in real estate.” “As home loans are likely to remain cheaper, …

Home Loan, Car Loan EMIs and Bank FDs: How will RBI MPC Announcements Impact your Budget?
2 years, 11 months ago

Home Loan, Car Loan EMIs and Bank FDs: How will RBI MPC Announcements Impact your Budget?

News 18  

The Reserve Bank of India’s six-member Monetary Policy Committee has kept repo rate unchanged, RBI governor Shaktikanta Das announced on Thursday, February 10. Repo-Linked Home, Auto Loans As the RBI decided to keep repo rate unchanged, rates on home, auto loans linked to repo-rate are unlikely to increase soon unless the bank decides to increase or decrease its risk premium …

RBI microfinance proposals that are anti-poor
3 years, 3 months ago

RBI microfinance proposals that are anti-poor

The Hindu  

In June 2021, the Reserve Bank of India published a “ Consultative Document on Regulation of Microfinance ”. The recommendations The consultative document recommends that the current ceiling on rate of interest charged by non-banking finance company-microfinance institutions or regulated private microfinance companies needs to be done away with, as it is biased against one lender among the many. Not …

Invest with care in small finance banks as they also cut rates
3 years, 6 months ago

Invest with care in small finance banks as they also cut rates

Live Mint  

The days of small finance banks offering over 7% returns on fixed deposits are coming to an end. In the first week of June, Capital Small Finance Bank and Equitas Small Finance Bank, too, had reduced their interest rates. Capital Small Finance Bank offers the highest interest rate on a 900-day FD at 6.25%, and Equitas Small Finance Bank offers …

MFIs may get to set interest rates
3 years, 7 months ago

MFIs may get to set interest rates

Hindustan Times  

Microfinance institutions may get freedom to set interest rates guided by a board-approved policy, under a Reserve Bank of India proposal to review the regulatory framework governing them. The proposal, if implemented, will end the existing regulatory cap on MFI interest rates. However, while doing so, they should ensure usurious interest rates are not charged,” The RBI said in its …

High NPAs, sticky interest rates
4 years, 2 months ago

High NPAs, sticky interest rates

India Today  

A recent working paper from the Reserve Bank of India has said that a high incidence of non-performing assets in banks act as a major roadblock to the transmission of the monetary policy actions of the central bank—in other words, preventing banks from passing on the benefit of lower interest rates to their retail customers. This observation is significant because …

Bank Credit Grows 5.51% and Deposits 11.11%, Shows Latest RBI Data
4 years, 5 months ago

Bank Credit Grows 5.51% and Deposits 11.11%, Shows Latest RBI Data

News 18  

Bank credit and deposits grew 5.51 per cent and 11.11 per cent to Rs 102.65 lakh crore and Rs 141.61 lakh crore, respectively, in the fortnight ended July 31, according to the latest data from the RBI. On a year-on-year basis, non-food bank credit growth was at 6.7 per cent in June 2020, nearly the same as in May 2020 …

RBI announces incentive for lending to MSME, home, auto sectors
4 years, 11 months ago

RBI announces incentive for lending to MSME, home, auto sectors

India TV News  

In a bid to increase lending to MSME as well as to auto and home segment, Reserve Bank on Thursday tweaked maintenance of cash reserve ratio norms by providing relaxation in calculation of total deposits. "As a part of this, it has now been decided that scheduled commercial banks will be allowed to deduct the equivalent of incremental credit disbursed …

Half dozen public sector banks cut lending rates by up to 25 bps; home, auto loans to become cheaper
5 years, 3 months ago

Half dozen public sector banks cut lending rates by up to 25 bps; home, auto loans to become cheaper

Firstpost  

New Delhi: About half a dozen public sector banks, including Bank of India, Oriental Bank of Commerce and Bank of Maharashtra, have reduced lending rates by up to 25 basis points following a cut in the key policy repo rate by the RBI last month. In line with the decision of RBI to reduce repo rate by 25 basis points, …

Canara, Corporation Bank, others introduce repo linked loan products to meet 1 October deadline
5 years, 3 months ago

Canara, Corporation Bank, others introduce repo linked loan products to meet 1 October deadline

Firstpost  

In 2019, the RBI reduced the repo or short-term lending rate by 110 basis points, but the banks have reportedly passed on only up to 40 bps to borrowers New Delhi: Rushing to meet the RBI deadline of 1 October, many public sector lenders like Canara and Corporation Bank announced the launch of repo rate linked lending rate for faster …

SBI to adopt repo rate as external benchmark for all floating rate loans from Oct 1
5 years, 3 months ago

SBI to adopt repo rate as external benchmark for all floating rate loans from Oct 1

India TV News  

State Bank of India on Monday said it will adopt repo rate as the external benchmark for all floating rate loans for MSME, home and retail loans, from October 1, 2019. On September 4, the Reserve Bank of India had mandated all banks to link all new floating rate personal or retail loans and floating rate loans to micro, small …

No stressed MSME loan can be declared NPA till March 2020; govt asks banks to hold loan melas in 400 districts from 3 Oct
5 years, 3 months ago

No stressed MSME loan can be declared NPA till March 2020; govt asks banks to hold loan melas in 400 districts from 3 Oct

Firstpost  

Bank loan disbursements to the MSME sector stood at Rs 11.83 lakh crore in 2018-19, as against Rs 8.53 lakh crore done in 2017-18 New Delhi: In a bid to boost lending, the government on Thursday asked public sector banks to hold ’loan melas’ in 400 districts to lend to desirable shadow banks and retail borrowers, and said no stressed …

RBI mandate to link retail, MSME loans with external benchmark rates is credit negative for banks: Moody's
5 years, 4 months ago

RBI mandate to link retail, MSME loans with external benchmark rates is credit negative for banks: Moody's

Firstpost  

The RBI has so far this year cut interest rate by 110 basis points but lenders have transmitted only a part of it to borrowers in the form of a lower cost of taking loans. New Delhi: The Reserve Bank of India mandating banks to link certain loans to the external benchmark-based interest rate from 1 October is credit negative …

RBI external benchmark for bank loans credit negative: Moody's
5 years, 4 months ago

RBI external benchmark for bank loans credit negative: Moody's

The Quint  

Mumbai, Sep 10 Moody's Investor Service on Tuesday said the RBI's mandate on aligning commercial bank floating loan rates to the external benchmark from next month is credit negative for Indian banks. This will expose banks to asymmetrical movements in the cost of funding and loan yields, thus exposing them to interest rate risks," the US rating agency said in …

RBI makes it mandatory for banks to link retail loans for housing, MSMEs with external benchmarks from 1 October
5 years, 4 months ago

RBI makes it mandatory for banks to link retail loans for housing, MSMEs with external benchmarks from 1 October

Firstpost  

In 2019, the RBI has already reduced the repo or short-term lending rate by 110 basis points, but the banks have reportedly passed on only up to 40 bps to borrowers. In order to allow faster transmission of policy rate cuts to borrowers, the Reserve Bank has said that the lenders must link all new floating-rate loans for housing, auto …

SBI home loan EMIs to drop from today
5 years, 6 months ago

SBI home loan EMIs to drop from today

Live Mint  

India's largest bank, State Bank of India, has lowered its lending rates by 5 basis points across all tenors with effect from today. "As a result, interest rates on all loans linked to MCLR stand reduced by 5 basis points with effect from July 10, 2019," the SBI said in a statement. This development comes a day after the Reserve …

SBI, Indian Overseas Bank reduce interest on home, auto loans post-RBI cut
5 years, 9 months ago

SBI, Indian Overseas Bank reduce interest on home, auto loans post-RBI cut

India TV News  

Within days of the Reserve Bank of India lowering its key lending rate, state-run State Bank of India on Tuesday reduced its benchmark marginal cost of funds based lending rate and home loan rates, effective from April 10. Besides SBI, Indian Overseas Bank also reduced its interest rate on loans by 5 basis points for tenures of one-year and above …

No change in retail lending, deposit rates anytime soon
5 years, 11 months ago

No change in retail lending, deposit rates anytime soon

Live Mint  

The Reserve Bank of India on Thursday announced a reduction in its benchmark repo rate by 25 basis points, taking it down to 6.25%. Deposit rates Past experience suggests that banks increase lending rates at a faster pace when RBI increases its policy rates compared to increase in their deposit rates. “Transmission of cut in policy rates may be a …

Opinion | Banking sector was positive on retail finance
6 years ago

Opinion | Banking sector was positive on retail finance

Live Mint  

Retail lending has had a good run in India in recent years. Disenchantment with corporate finance, the emphasis and almost direction by the concerned ministry to PSBs on increasing the retail portfolio and indeed the continuing interest in this segment across the entire banking industry, as well as the rapid increase in the number and growth of non-banking finance companies, …

Concerns on credit supply to small businesses a myth: SBI report
6 years, 1 month ago

Concerns on credit supply to small businesses a myth: SBI report

Live Mint  

Mumbai: Economists at the country’s largest lender SBI Tuesday termed concerns on credit supply to small businesses as a “myth” and said the sector has had a “stupendous” loan growth since GST. “The myth is.regarding the credit growth to Micro and Small Enterprises,” its economists said in a note. Calling the credit growth to the sector as “quite stupendous”, the …

The need for a boost to MSME sector
6 years, 2 months ago

The need for a boost to MSME sector

Live Mint  

Prime Minister Narendra Modi’s Diwali package for micro, small and medium enterprises may be late in the day, but it’s nevertheless a boon, particularly the interest subvention and the measures to see that bills are paid on time. According to the MSME Pulse report, for public sector banks, the level of non-performing assets among MSMEs went up from 13% in …

Discover Related