Axis Bank has launched a new home loan product to mobilize its mortgage book volumes and to ensure a better credit. This product will waive off a few EMIs during the course of a home loan. It will waive off four equated monthly installments each at the end of the fourth, eighth and the 12th year of a two-year loan.

For example, if a borrower takes a 20-year loan, the consumer will get 12 of the EMIs waived off, which will help save Rs 3.09 lakh on a Rs 30-lakh loan, as per the bank’s claims.

The loan waivers will be available only for loans of up to Rs 30 lakh and will be rolled out in the form of reduction in loan tenures. The interest remains unchanged at 8.35%.

There however, seems to be a catch as the borrower will be disqualified from the benefits if he misses a single EMI payment. As per a senior bank official, this will not amount to a 'teaser loan' as no differential rates of interest are being applied here.

The bank already has a special product for the affordable housing segment called 'Asha', while the new product is christened 'Shubh Arambh', the official said, adding the former is aimed at the lower income group (of loans up to Rs 25 lakh).            
Posted on: August 21, 2017, 2:39 pm

ICICI Bank has just launched a facility for instant disbursal of personal loans through ATMs. Under this facility, salaried customers of the bank are eligible to get pre-qualified personal loans of up to Rs. 15 lakh in their savings accounts instantly. There is no paperwork involved and is totally digital and instant.

This option of availing a personal loan will be visible once a transaction for cash withdrawal or balance enquiry is complete.

The following steps are given to avail this loan facility: 

(i) Select the required pre-approved loan offer. Multiple amounts may be shown depending on the

customer's eligibility.

(ii) Accept the auto populated interest rate, processing fee and EMI amount. 

(iii) Confirm on the terms and conditions displayed

(iv) Enter debit card PIN 

The loan amount gets transferred to the customer’s account instantly upon the completion of the process above.

As per the statement released by the bank, the loan facility comes with features including swift application in simple steps, multiple eligible loan amount options based on pre-checked CIBIL scores and instant transfer of money.


Personal loans of up to Rs. 15 lakh for a fixed tenure of 60 months can be availed by the customers.            
Posted on: July 24, 2017, 1:59 pm

RSS Chief, Mohan Bhagwat stated that loan waivers were not the solution to the problems being faced by the agricultural sector, while addressing a group of businessmen in Mumbai.

He further added that, to address the woes of the farmers, the agriculture sector needs to be streamlined to make it a profitable proposition. The business class should extend support to the farmers to help them be abreast with the latest advancements in the field of technology and agriculture.

Sources read between the lines as this statement from Bhagwat comes at a time soon after Maharashtra CM Devendra Fadnavis announced a loan waiver to about 70 lakh farmers and touted it to be of a political nature. 

The loan waiver in Maharashtra amounting to Rs. 34, 000 crore will be an additional burden on the state exchequer. The BJP led government will be forced to cut down expenditure on development projects. These may be the reasons which may have compelled Bhagwat to issue such a statement.

A senior BJP leader stated that "Mohanraoji’s statement is a clear indication that the Sangh Parivar is opposed to populist policies. The CM will hereafter have to see that he doesn't tread on RSS' toes."            
Posted on: July 6, 2017, 1:13 am

After the states of Uttar Pradesh, Maharashtra and Punjab to write off farm loans this year, Karnataka is set to become the fourth state to waive off farmer loans. The Chief Minister, Siddaramaiah announced a crop loan and short term loan waiver of up to Rs. 50, 000 which have been taken from agricultural cooperative banks.


This move will be advantageous to 22, 27, 506 farmers who have taken loans amounting to Rs. 10, 736 crore from cooperative banks. The CM stated that he wanted the Central government to waiver farmer loans from nationalized and commercial banks. He also stated that Karnataka was the first state in the country to transfer input subsidies directly to bank accounts of farmers. He said, "While some farmers have obtained interest-free loans to the tune of Rs 25, 000, others have availed up to Rs 3 lakh. We'll waive off loans up to Rs 50, 000, irrespective of the total loan amount."


This move has been purported to be taken to win the majority in the next poll elections in the state by the Congress. It also comes at a time when Union finance minister, Arun Jaitley has expressed that the Centre will not fund any waiver of farm loans by states.

Posted on: June 26, 2017, 4:11 pm

Banks in the country have been asked by the Reserve Bank of India to use the courts to resolve bad loans which amount to a total of Rs. 2 lakh crore issues to 12 large debtors.

The apex bank directed the banks to use insolvency laws to find a solution for the debtors before resolving other problems with accounts within six months. Since these 12 debtors account for a quarter of the country’s bad loans, it is pertinent to resolve this issue prior to any other. Indian banks have among the world's worst stressed-asset ratios with total bad loans of more than $180 billion.

The Banking Regulation Act was amended last month by the government to enable the RBI to order lenders to initiate insolvency proceedings against defaulter’s ad to create committees for advising banks on recovering loans.

The RBI didn't disclose the names of the 12 largest debtors. The banks have filed just 18 cases under the insolvency provisions. The present government has set a priority to get rid of bad loans to revive the economy. Though cases have been filed, the delays in receiving verdicts have deterred lenders from taking more cases to the insolvency courts. 

Posted on: June 15, 2017, 4:56 pm

The Reserve Bank of India has reduced the risk weightage on home loans above Rs. 75 lakh to 50% from the earlier 75%. This is purported to encourage banks to lend more for housing in large cities and make high value home loans cheaper.


The RBI stated in its monetary policy – “Considering the importance of the housing sector and given its forward and backward linkages to the economy, it has been decided as a countercyclical measure, to reduce the risk weight on certain categories. It has also been decided to reduce the standard asset provisioning on such loans.”


The RBI retained the repo rate at 6.25% and the reverse repo rate at 6%. The marginal standing facility continues to remain at 6.5% and the cash reserve ratio of 4%.


It has been expected that the RBI would maintain the status quo on the rates. The RBI has maintained a neutral stance as easing of prices might be temporary. Economists have been presuming that the RBI would ease its stance from `neutral' to `accommodative' to send a message that easy money conditions would prevail. The fuel prices have been hiked since the inflation numbers were published and prices might rise further.

Posted on: June 11, 2017, 6:33 pm

The Bihar state government reduced the stamp duty on applications filed by students for student credit card from Rs, 1, 000 to Rs. 100.


As per the seven resolves of the Bihar state government, it facilitates education loan of up to Rs. 4 lakh under the student credit card scheme for all Class XII passouts who wish to pursue higher education. The government is the guarantor in such loans. Every student who secures an admission in any recognized institution are eligible for loan under this scheme.


Since the government has reduced the stamp duty upon the application, more students will be able to apply and avail of this facility. This scheme was launched on October 2 last year by the Chief Minister Nitish Kumar along with the Swayam Sahayta Bhatta (self-help allowance) and Kaushal Yuva Karyakram (skill development) under 'Arthik Hal, Yuvaon Ko Bal' programme of the state government.

The loan under student credit card scheme covers admission fees, hostel accommodation, expenses on books and other miscellaneous expenses.


The state cabinet also agreed to the proposal for Rs. 25 crore to take on lease one acre of land at Dwarka in Delhi for development of a state guesthouse by the Delhi Development Authority. 

Posted on: June 2, 2017, 2:51 pm

No. of Views : 976

In an unprecedented move, the Reserve Bank of India (RBI) is creating a post of a chief financial officer (CFO) and has sought applications for the position.

The CFO will be an executive director and his role and responsibility will include presentation and reporting of financial information of the central bank, and establish accounting policies and procedures and ensure compliance with regulations. The official will also be entrusted with communicating the RBI's expected and actual financial performance and overseeing its budget processes.

The RBI didn’t have any particular official handling these responsibilities and were being carried out internally. However, this position is now being touted to be introduced by RBI Governor Urjit Patel.

The CFO can either opt for regular appointment or a contract and will not be eligible for any career progression within the bank. The preferable candidate should be a chartered accountant aged between 45 and 55 years, who has a minimum of 15 years of experience overseeing financial operations in banks or financial sector organisations.

The gross monthly emoluments will be around Rs. 2.40 lakh, while for appointment on contract basis, cost per month will be Rs. 2 lakh with housing and Rs. 4 lakh per month without housing. 

Posted on: May 18, 2017, 12:41 pm

UCO Bank is facing business restrictions from the Reserve Bank of India (RBI) after the bank has been under tremendous losses, continuous loss of net worth and huge NPAs. It also informed the stock exchanges that the RBI has initiated action on some of its business activities over its bad loans and negative return on assets.


The bank also stated in its filing to the stock exchange that the RBI restrictions will not have any material impact on its performance without disclosing any details about the restrictions. It is purported that the restrictions will be on lending and branch expansion plans as the bank has reported losses for two successive fiscals amid severe stress on asset quality.


An official of the bank also stated that “there would be check on management compensation and directors' fees as well as the invocation of prompt corrective action (PCA) for the bank by the regulator aiming to bring it back on recovery path.


It is the second bank after IDBI Bank to follow RBI’s revision of its PCA framework which is aimed to help bring loss making banks on track.

The bank has brought down its losses to Rs. 588 crore in the fourth quarter of 2016-17.

Posted on: May 16, 2017, 5:46 am

The Asian Infrastructure Investment Bank (AIIB) approved a loan amount of USD 160 million to strengthen the power transmission and distribution system in support of the Andhra Pradesh 24x7 Power project. This is part of the government’s Power for All Program which was launched in 2014 to provide an efficient, reliable and affordable electricity supply to all consumers in selected states. Andhra Pradesh is one of the first states selected for the rollout of the Power for All program.

The project is co-financed with the World Bank.

AIIB promotes energy efficiency which involves upgrading the existing transmission and distribution networks and encourages its members to turn towards a low-carbon energy mix for the same. AIIB has been working closely with India and plans to invest and provide loans for future projects in the country as well.

The project aims to strengthen the transmission and distribution network, increasing network capacity, improving system reliability and supporting operational reforms to improve the commercial performance of the state's distribution companies. This will help improve the economic development of Andhra Pradesh as well as India by increasing delivery of reliable, grid-based electricity to households, business and the agricultural sector.

Posted on: May 5, 2017, 3:49 pm


Convixer on Twitter

Popular Guide posts
How to create wealth

How to create wealth

Everyone wants to become rich or at least have enough money to live a comfortable life....

Causes of poverty in India

Causes of poverty in India

India has a large number of poor people. According to estimates, around 80% people of t...

Thinks to take care while applying for a home loan

Thinks to take care while applying for a home loan

House Loan or home loan is much more complex than it appears. If you have already decid...

How to find best general insurance deals

How to find best general insurance deals

All your belongings that have a monetary value can be covered under general insurance p...

How to make money in stock market

How to make money in stock market

Humans tend to imitate each other. Hearing some success stories, many people tend...

Things to consider before buying a car insurance

Things to consider before buying a car insurance

A car insurance may cost you a lot without fulfilling all your requirements. Choosing a...

How to find best saving rates

How to find best saving rates

To determine the best financial institution to find the best savings rate is often a di...

Why you should buy a car insurance?

Why you should buy a car insurance?

Car insurance is an insurance against any damage or casualty caused by a car accident....

How to find best saving account rates

How to find best saving account rates

No matter how you have been dealing with your current bank or how to find the best poss...

Why go for Health Insurance for Individuals

Why go for Health Insurance for Individuals

In the current situation, when the whole world is facing the the negative effects of th...