News That Matters

Tag: loans

HDFC hikes interest rates on home loans 20 basis points

HDFC hikes interest rates on home loans 20 basis points

Finance
MUMBAI: Mortgage lender HDFC on Thursday hiked interest rates on home loans by 20 basis points, a day after RBI raised the benchmark repo rate by 25 bps to 6.5%. As per the new rates, women borrowers can avail a home loan of upto Rs 30 lakh at 8.7% while other customers will be charged a rate of 8.75%. New rates are effective from 1st August. For loans above Rs 30 lakhs women borrowers will be charged at 8.80% while other borrowers will be charged a rate of 8.85%. On Wednesday, at least three banks - Union Bank of India, Kotak Mahindra Bank and Karnataka bank – increased their marginal cost of lending rates (MCLR) by 5-10 basis points. The largest mortgage loan providers such as State Bank of India (SBI), ICICI Bank and Punjab National Bank have kept their MCLR rates unchanged. On J...
Delinquency in retail loans are minimal compared to big-ticket loans: Study

Delinquency in retail loans are minimal compared to big-ticket loans: Study

Finance
Retail loans are perceived to be safe as delinquency and bad loans are minimal compared to corporate loans. A study by Transunion Cibil shows that delinquency in retail loans have ranged between 0.52 per cent and 2.78 per cent. But the risks on big-ticket loans, particularly auto loans and loan against property, are higher compared to personal loans or consumer durable loans, which is relatively smaller-sized loans. Let's block ads! (Why?) Personal Finance News-Wealth-The Economic Times
Why you should start paying off your student loans as soon as possible, even before graduation

Why you should start paying off your student loans as soon as possible, even before graduation

Finance
When Ruth B., now 26, graduated from college in May 2014, she already had a few months of student loan payments under her belt. Ruth, who asked that her last name not be used, had taken out federal loans to help cover her tuition and living expenses every year. But in her senior year her family finances changed when her younger brother started college, as well. "My senior year I couldn't count on my mom to help me out, so I took out a private loan from Sallie Mae to cover everything that financial aid wouldn't cover," Ruth said. Ruth realized right...
Big banks get green light to make short-term, small dollar loans

Big banks get green light to make short-term, small dollar loans

Finance
Consumers who rely on payday loans to fill their budget gaps may have a new option to turn to: traditional banks. National banks just received the go-ahead to serve that market from their regulator, the Office of the Comptroller of the Currency. On Wednesday, Comptroller of the Currency Joseph Otting called for national banks and federal savings associations to step into the short-term, small-dollar installment loan market. These loans typically range from $ 300 to $ 5,000, according to the regulator. And that adds up to about $ 90 billion in loans ta...
Tata Motors Finance to sell securitised loans of Rs 500 crore

Tata Motors Finance to sell securitised loans of Rs 500 crore

Finance
Mumbai: Tata Motors Finance, which funds buyers of commercial vehicles sold under the Tata badge, plans to sell securities backed by loans worth Rs 500 crore ahead of the end of the fiscal year to free up cash to lend more in FY19. The non-banking finance arm of Tata Motors will sell the securities in private transactions with banks for which the exposure lowers their priority-sector lending commitments. Fitch Ratings has assigned a 'BBB-(EXP)sf' expected rating to the issue. Securitisation is a way of pooling loan receivables and selling their related cash flows to third-party investors as securities. This frees up capital for the originator of loans as funds received as proceeds could be lent to more customers and help expand the business. Tata Motors Finance competes with larger compani...