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FALAKNAAZ SYED Mumbai, April 26 The Reserve Bank of India on Friday said that lending service providers, acting as agents of banks, should provide a digital view of all the loan offers available with them to the borrower to help them make an informed decision. The central bank said that it has observed that many of the LSPs offer aggregation …

Home loan interest rates have increased from around 6.5% to 8.5% in the last two years. At the time of interest rate change, the borrower to choose whether to increase EMI or loan tenor: Earlier, whenever the interest rates on home loans went up, banks increased the loan tenor. The framework will require the bank to inform the borrower at …

Banks

RBI has said that banks and NBFCs will have to release property documents withing 30 days of repayment of a loan

In a big relief for borrowers, the Reserve Bank of India informed that banks and Non-Banking Financial Corporations have to release documents of properties and collateral mandatorily within 30 days of settling a loan. * Have to remove encumberance within 30 days, and return docs * Docs can be returned from any branch, not just home branch of customer * …

RBI asks banks, NBFCs to release original movable, unmovable property documents within 30 days of full repayment of loan

The Reserve Bank of India has issued directions to Regulated Entities such as banks and non-banking finance companies to release all the original movable / immovable property documents and remove charges registered with any registry within a period of 30 days after full repayment/ settlement of the loan account. “However, it has been observed that the REs follow divergent practices …

Mumbai: The Reserve Bank of India on Friday asked lenders to provide options to floating rate loan borrowers to either increase Equated Monthly Instalment or tenure or prepay the full amount or a part of it at any point during the tenure or move to fixed-rate interest rate at the time of resetting the loan. The central bank said that …

Nirmala Sitharaman Asks Banks Not to Take Harsh Steps For Loan Recovery

MUMBAI: Union Finance Minister Nirmala Sitharaman on Monday said that both public and private sector banks have been instructed not to take harsh steps to recover loans and that they should handle such cases with sensitivity. The central bank said banks, non-banking financial companies, cooperative banks, housing finance and asset reconstruction companies should ensure recovery agents desist from publicly humiliating …

The Telangana High Court relying on decision of Apex Court in Bijnor Urban Cooperative Bank Limited, Bijnor v. Meenal Agarwal, ruled that Banks have the freedom to accept or reject One-Time Settlement proposals as per their commercial wisdom. "No bank can be compelled to accept a lesser amount under the One Time Settlement scheme despite a bank is able to …

There are two types of loans, firstly secured and secondly unsecured. Loan against property falls under the secured loan category where a borrower offers his or her commercial or residential property as collateral to borrow a certain amount from a lender either by banks or other financial services providers. Longer repayment tenure: In comparison to a personal loan, LAP usually …

Comparing outstanding loan amounts with the value realised may not be a 'reasonable indicator' to assess the bankruptcy law's effectiveness, said Reserve Bank Deputy Governor M. Rajeshwar Rao, while seeking to address concerns over deep haircuts that banks had taken in some of the insolvency resolutions plans. "Rather, the resolution values must be compared with the next best alternative for …

Writ Petition By Borrowers Challenging SARFAESI Proceedings Initiated By Private Banks/ARCs Not Maintainable: Supreme Court

The Supreme Court observed that a writ petition challenging proceedings under SARFAESI Act initiated by private banks/Asset Reconstruction Companies is not maintainable. "If proceedings are initiated under the SARFAESI Act and/or any proposed action is to be taken and the borrower is aggrieved by any of the actions of the private bank/bank/ARC, borrower has to avail the remedy under the …

People borrow money for various reasons. Unlike the secured loans, unsecured loans are taken without keeping a collateral. Lenders give funds in an unsecured loan solely on the borrower’s creditworthiness and promise to repay. While giving unsecured loans, banks check credit history of the borrower. Examples of unsecured loans are personal loan, education loan and credit card transactions.

Foreign Banks Expressing Concerns Over RBI's New Current Account Norms: Senior Banker

The Reserve Bank’s new guidelines on current account have made the foreign banks jittery, as they will not be able to garner nil-interest funds from corporate in the name of providing better services than their domestic counterparts, said a senior banker. So far, foreign banks used to manage the large current accounts of India Inc with virtually little or no …