Bad debts caused by non payment of loans by small borrowers have caused a hike in the volume of NPAs of Bank of Baroda. The fact was stated by Bank of Baroda Executive Director R.K. Bakshi. He said that most of NPAs occurred when small borrowers taking loans up to Rs. 50, 000 failed to… Read More »
The timing came as a surprise to markets as it expected announcements on the rate front but only during its annual monetary policy announcement scheduled for April 20. RBI is of the opinion that monetary policy changes have a lag effect, so making announcements in a timely manner helps to avoid taking strong measures at… Read More »
The competition in this arena is expected to further strengthen the infrastructure capabilities of CIBIL, which currently has the first mover advantage and a huge database to its credit, not to mention a huge list of banks and financial institutions as its members. On the other hand the new entrants come with the rich experience… Read More »
CIBIL acts as weeding mechanism, that helps identify poor repayment track records. It helps protect lenders from giving credit to people and establishments who are unlikely to repay what is lent. Even if credit is provided, it is done so at a very high rate of interest, thereby ensuring that the bank is able to… Read More »
At any given point in time, an X% flat rate is always more expensive than an X% annual reducing balance rate. The effective total interest paid out is also influenced by the time periods the reducing balance is recalculated, which could be monthly, daily, yearly, quaterly or half yearly. These time periods are known as… Read More »
Due to the current economic slowdown most banks had stopped giving out Sub-PLR loans for some time. With improved liquidity conditions, banks have come back on the trend of disbursing loans at discounted rate that is below benchmark prime lending rates (BPLR). Majority of fresh loans, around 65% to 70% are being disbursed at sub-PLR… Read More »
There is no set upper limit to the amount you can pay as down payment – it all depends on how much cash you can manage to set aside. The more you are able to pay as down payment, the lesser is the amount of loan taken from a bank, resulting in easier monthly payments… Read More »
You can obtain a loan against the surrender value of your life insurance policy from the insurance company or from a bank or obtain a loan from your provident fund account if you have had an employee provident fund account for more than 5 years. The interest rates would definitely be lower compared to the… Read More »
Banks have something called the benchmark prime lending rate, which is a reference interest rate that is used as a benchmark to determine the interest rate that is passed on to the customer. This will accordingly reflect in the EMI the borrower has to shell out to repay his loan. The interest rate that is… Read More »
Kolkata-based UCO Bank has reported a 38.40 per cent rise in net profit to Rs 207.72 crore for the second quarter compared to Rs 150.09 crore in the same period last year.