Page 3 - Loan Rates

Monetary policy: RBI to prescribe framework to reset floating rate loans

Pulls up banks for ignoring repayment capacity while elongating repayment period

Share of loans bearing over 9% interest rate hits 56.1% in March: RBI

The share of loans bearing over 9 per cent interest rate rose to 56.1 per cent in March 2023, in tandem with the monetary tightening measures starting May 2022, said a Reserve Bank report on Friday. The Reserve Bank started raising interest in May 2022 to rein in inflation in the wake of global supply disruptions, following the Russia-Ukraine war. Since then the benchmark short-term lending rate has increased by 250 basis points. However, the RBI did not raise the rate in its last two bi-monthly monetary policy reviews. "Consistent with the monetary tightening measures during 2022-23, the share of loans bearing over 9 per cent interest rate rose to 56.1 per cent in March 2023 from 31.4 per cent a year ago," said the Basic Statistical Return on Credit by Scheduled Commercial Banks in India - March 2023. The RBI further said all population groups recorded substantially higher credit year-on-year growth in 2022-23. The annual growth in lending by metropolitan branches of banks ...

RBL aims to expand NIMs; credit cards, MFIs to outpace loan book growth

RBL Bank is targeting to expand its net interest margin (NIM) to over 5.2 per cent by the end of FY24 by upping the share of higher-yielding assets in its loan book, a top official has said. The private sector lender will continue to maintain the share of unsecured loans like credit cards and microfinance by growing them at over the 20 per cent overall loan book increase targeted for every year till FY26, R Subramaniakumar told PTI. The bank had reported an expansion in NIMs to over 5 per cent in the March quarter, in line with the industry trend. "NIM will be 5.2-5.3 per cent by the end of the year (FY24). The mix of products will deliver the higher yield," he said. Subramaniakumar said the bank is targeting to increase the share of secured retail assets like mortgage loans, loans against property, two and four-wheeler loans, which will yield higher. He admitted that given its relatively smaller size, it has to offer higher deposit rates to get the required liabilities to fund th

Have a good credit score, need quick money? Opt for unsecured loan

Since the interest rate is high and the loan tenure short, evaluate your repayment capacity carefully

Rs 40,700 cr loan sanctioned under Stand-Up India, focuses on job creation

As much as Rs 40,710 crore loan has been sanctioned to over 1.8 lakh accounts under the government's flagship Stand Up India Scheme, which is focussed on economic empowerment and job creation, according to official data. Of the funds sanctioned since the inception of the scheme in 2016, about 80 per cent of the loans have been given to women entrepreneurs. The scheme was launched on April 5, 2016 to promote entrepreneurship amongst women, Scheduled Castes (SC) and Scheduled Tribes (ST) categories by providing them loans for starting a greenfield enterprise in manufacturing, services or the trading sector and activities allied to agriculture. In the first year, Rs 3,683 crore was sanctioned which has now swelled to Rs 40,710 crore as on March 31, 2023, the data showed. As much as Rs 33,152.43 crore was sanctioned to 1.44 lakh accounts of women while 26,889 loans worth Rs 5,625.5 crore were to SCs and 8,960 loans worth Rs 1,932 crore to STs under the scheme. The scheme has since bee

Home truths: High loan rates and job losses threaten price growth

But if rate cuts begin and layoffs are limited, the housing market could repeat FY23's performance

Difference between rise in median MCLR, term deposits crosses 40 bps

Interest rates on fresh deposits have moved up faster than fresh loans

Bank of Baroda increases MCLR from 8.3% to 8.5% effective January 12

Marginal cost of funds-based lending rate (MCLR) is the minimum interest rate below which a bank cannot lend, except in certain cases

NBFC-MFIs overtake commercial banks in micro loan market share in Q2

One reason for this shift in trend could be that banks faced challenges in managing this asset class, especially after the outbreak of the Covid-19 pandemic and the resultant lockdowns

Vi in talks with SBI for loan of Rs 15K-16K crore for capex needs: Report

The talks have reportedly been going on for over a month now and SBI is waiting to get clarity on the govt's potential shareholding in Vi

60% in survey report personal data breach by their loan service provider

Four out of 10 in LocalCircles study point finger towards insurance providers or banks

Rising median loan rates lead to fall in affordability of homebuyers

A cumulative increase of 0.95 per cent in median home loan rate has impacted the purchase affordability and purchase decisions of homebuyers, according to the Affordability Index by Knight Frank

IOB, Bank of Baroda raise MCLR rates by up to 0.10%, makes loan costly

Bank of Baroda and Indian Overseas Bank have raised their MCLR rates by up to 0.10 per cent, which will make most loans costlier for the customers. Indian Overseas Bank has revised upwards the MCLR rates by 0.10 per cent across tenors, making consumer loans costlier from Saturday. The benchmark 1-year tenor marginal cost of funds based lending rate (MCLR) has been revised to 7.75 per cent against the existing rate of 7.65 per cent. This will impact car, personal and home loans. The two and three-year MCLRs have been hiked by a similar margin to 7.80 per cent each. Among others, the overnight MCLR will cost 7.05 per cent, while one month at 7.15 per cent. The three and six-month MCLRs are up at 7.70 per cent each. The revised MCLRs will come into effect from September 10, 2022, Indian Overseas Bank said in a regulatory filing. Bank of Baroda's one-year MCLR will be priced at 7.80 per cent against 7.70 per cent, the bank said in a regulatory filing. The six-month MCLR will be up

HDFC Bank hikes MCLR by 10 bps across loan tenures, effective Sep 7

Second rate hike in two months by lender after RBI's rate setting committee hiked benchmark repo rate by 50 bps to 5.4%; new MCLR at 7.90-8.40%

Axis Bank ties up with PayNearby, aims to boost priority sector lending

Private lender's portfolio of rural loans was at Rs 58,800 cr at the end of the first quarter this financial year

Punjab National Bank to hike MCLR by 0.05% across tenors from Sep 1

Punjab National Bank has raised the marginal cost of funds-based lending rate (MCLR) by 0.05 per cent across tenors from September 1, making most of the consumer loans costlier. The benchmark one-year tenor MCLR, which is used to price most consumer loans such as car, auto and personal, will be at 7.70 per cent against the existing 7.65 per cent, PNB said in a regulatory filing on Wednesday. The three-year MCLR stands at 8 per cent, up by 0.05 per cent. Among others, the rate of one-month, three-month and six-month tenor will be in the range of 7.10-7.40 per cent. The MCLR on overnight tenor will be 7.05 per cent against 7 per cent. Earlier this month, the state-owned lender increased the repo-linked lending rate to 7.90 per cent, up by 0.50 per cent, with effect from August 6 following the increase in repo rate by the RBI.

ICAI probing chartered accountants for role in helping Chinese loan apps

Indian CAs are accused of not conducting due diligence before signing several statutory documents for several Chinese loan apps

Bonanza for Indian euro loan borrowers as currency slides against dollar

Companies will have to buy fewer dollars to repay euro debt

Hitch a ride on a fixed-rate car loan and shield yourself from another hike

But lenders can impose restrictive conditions on prepayment and foreclosure

Lending rate hikes will not deter borrowers, says Bank of Baroda MD

Amid lending rate hikes by several lenders, state-run Bank of Baroda's CMD Sanjiv Chadha on Thursday termed the increases as "normalisation" in borrowing costs which will not deter loan seekers.