News That Matters

Finance

Home loan rates set to dip to 15-year low, EMIs to fall

Home loan rates set to dip to 15-year low, EMIs to fall

Finance
NEW DELHI: The RBI's announcement is good news for home loan borrowers with a secure income, as interest rates in this category will come down by 40 basis points (100bps equal 1 percentage point) to around 7%. This is the lowest level in over 15 years. Also, borrowers who are facing income uncertainty because of the Covid-19 lockdown can avail of an additional three-month moratorium to get their finances in order. Those borrowers who have not availed of a moratorium so far but are now facing income pressure can still defer their repayments for three months. For a loan of Rs 30 lakh with a remaining maturity of 15 years, the net additional interest would be approximately Rs 2.34 lakh — equal to eight EMIs. A part of this burden could come down because of the reduction in interest rates. For
BoB says 65% customers opted for moratorium

BoB says 65% customers opted for moratorium

Finance
Mumbai: About 65% of Bank of Baroda (BoB) customers have opted to take the moratorium offered by the bank following a Reserve Bank of India (RBI) directive, CEO Sanjiv Chadha said in a conference call with journalists. "We have offered the moratorium to all borrowers and those who don't want it have to opt out. So those who are not paying are automatically considered for the scheme. Our calculations show that about 65% of borrowers have opted for it," Chadha said. BoB's numbers are higher than some peer banks like State Bank of India (SBI) which had said that only 20% of its borrowers had opted for the moratorium. Chadha however said he expects the nunbers to come down. "We expect that number to come down as the lockdown eases and cash flows improve," Chadha said. Some customers will come...
Some Uber, Lyft drivers fear companies will use unemployment benefits against them

Some Uber, Lyft drivers fear companies will use unemployment benefits against them

Finance
A driver and passenger wearing protective masks exit the ride sharing pickup area in a car displaying Uber Technologies signage at San Francisco International Airport in San Francisco, California, U.S., on Monday, May 4, 2020. Photographer: David Paul Morris/Bloomberg via Getty ImagesBloombergLeonardo Diaz is in a tough spot.Diaz, a driver for Uber and Lyft, has been unemployed for more than two months.The 51-year-old hasn't picked up riders for fear of contracting Covid-19 and, in turn, infecting his family.But Diaz, a Los Angeles resident, is also afraid to apply for unemployment benefits, as nearly 39 million Americans have done since mid-March amid to the coronavirus pandemic.Diaz is torn.On one hand, he needs the financial assistance. But on the other, he thinks applying for unemploym...
Franklin Templeton appoints legal counsel to maximise recovery in Essel Infra bonds

Franklin Templeton appoints legal counsel to maximise recovery in Essel Infra bonds

Finance
Franklin Templeton has appointed a legal counsel and is actively considering all necessary actions to maximize recovery value in Essel infra Bonds. Four of its fixed income schemes, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk, Franklin India Short Term Income Plan and Franklin India Low Duration Fund are invested in 0% Essel Infra Series 1 and 0% Essel Infra Series 2, which matured on May 22, 2020. In a note to investors, Franklin Templeton said, "At maturity, the issuer was unable to meet the maturity obligation. These NCDs are currently valued at 15% of value after taking an 85% hair cut. The NCDs are backed by a pledge of listed shares of Zee Entertainment, Dish TV, unlisted shares of EIL, personal guarantee of Subhash Chandra and corporate guarantee. There is no im...
Wary mutual funds still refuse to buy all but the safest debt

Wary mutual funds still refuse to buy all but the safest debt

Finance
By Subhadip SircarMoney managers in India have become so concerned about credit risk that even guarantees from policymakers for lower-rated debt is failing to entice them. Sentiment soured after Franklin Templeton, a big buyer of high-yield Indian notes, shut six debt funds in April. And this week, the market regulator allowed some bond funds to hold more government paper and treasury bills, underlining the flight to safety triggered by Franklin’s shock decision. “We continue focusing on quality within fixed income,” said Suyash Choudhary, head of fixed income at IDFC Asset Management in Mumbai. “A big part of this is due to drivers like lack of adequate liquidity and price discovery” in lower-rated papers, he said. Finance Minister Nirmala Sitharaman earlier this month announced a 300 bil