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Credit crunch leads to increase in demand for gold loans

Credit crunch leads to increase in demand for gold loans

Finance
Refused a loan by a state-run lender and desperate for funds to buy cotton seeds before the summer sowing season window closed, Indian farmer Babasaheb Mandlik ran out of choices - he pawned his wife's gold jewellery. Mandlik, who owns an 8-acre cotton farm in western India, pledged 70 grams of gold, almost all of his wife's precious trinkets, in June in return for 150,000 rupees ($ 2,105). "Pawning the jewellery was a difficult decision as my wife likes to wear it at festivals and weddings," 50-year-old Mandlik told Reuters. "I convinced her that we didn't have any other option." Mandlik is not alone. While pawning gold has long been an option for quick funds in a country that is the world's second-biggest consumer of the yellow metal, several lenders told Reuters of unprecedented demand ...
Sundaram BNP Paribas cuts interest rates on home loans

Sundaram BNP Paribas cuts interest rates on home loans

Finance
Chennai: Sundaram BNP Paribas Home Finance Monday announced a 10 basis points reduction in its prime lending rate on housing and non-housing loans with immediate effect. "The reduction in lending rates is in line with the current interest rate in the market," Sundaram BNP Paribas Home Finance, Managing Director, Srinivas Acharya said. "We are hopeful that the government's favourable proposals in the recent budget for the housing sector would improve the home buying sentiments and drive demand," he said in a company statement here. Acharya said the company did not face any liquidity related issues this year and was comfortably placed in terms of fund raising. "...we will continue to expand our presence in the affordable housing segment and newer areas," he added. Sundaram Home Finance poste...
Banking sector performance improved due to fall in bad loans in 2018-19: Economic Survey

Banking sector performance improved due to fall in bad loans in 2018-19: Economic Survey

Finance
NEW DELHI: The performance of banking sector has improved as bad loans declined in the last fiscal, but financial flows are constrained due to fall in money raised from capital markets and stress in the non-banking financial sector, the Economic Survey 2018-19 said Thursday. The monetary policy witnessed a U-turn over the last year. The benchmark policy rate was first hiked by 50 basis points (bps) and later reduced by 75 bps due to weaker than anticipated inflation, growth slowdown and softer international monetary conditions, the survey, tabled by Finance Minister Nirmala Sitharaman in Parliament, said. "The performance of the banking system has improved as non-performing asset (NPA) ratios declined and credit growth accelerated. However, financial flows to the economy remained constrain...
Ex-IFIN directors okayed loans to Siva companies despite RBI reservations

Ex-IFIN directors okayed loans to Siva companies despite RBI reservations

Finance
The Serious Fraud Investigation Office (SFIO) said that former directors of IL&FS Financial Services (IFIN) allowed the NBFC to lend to Siva Group companies despite the Reserve Bank of India (RBI) having said in its inspection reports that the collateral was inadequate. Siva Group chairman C Sivasankaran is one of the 30 individuals and entities against whom the SFIO filed its chargesheet on Thursday in the Infrastructure Leasing & Financial Services (IL&FS) default case. The investigative unit of the Ministry of Corporate Affairs recommended prosecution under Section 447 of the Companies Act for fraud and sections of the Indian Penal Code for cheating against 15 individuals and entities including nine erstwhile directors of IFIN, statutory auditors Deloitte Haskins & Sells...
This company wants to help shave $6,200 off your student loans

This company wants to help shave $6,200 off your student loans

Finance
Dan Kitwood | Getty ImagesWhen Michael Bloch's wife graduated from law school with more than $ 300,000 in student loans, the couple sat down to come up with a plan.After reading blogs and articles, drafting spreadsheets and consulting a financial advisor, they still didn't have an answer. "We really struggled with what is the right way to pay those loans back," Bloch said. "We found that there is no easy way to figure out what is the right thing for an individual to do."The dilemma inspired Bloch to drop out of Stanford Business School, where he would have racked up another $ 250,000 in student loans, to help others who are confronting the same problem.About 44.7 million Americans had student loan debt, which totaled $ 1.47 trillion, at the end of 2018, according to the Federal Reserve Ban...