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Apr72021 by adminNo Comments

Local lockdowns: RBI says no need for loan moratoriums at present

Finance

Amid an increase in localised lockdowns across the country, Reserve Bank Governor Shaktikanta Das on Wednesday said there is no need for a loan repayments moratorium at present, stating that businesses are better prepared to face the situation. It can be noted that the RBI had announced a six-month moratorium in the early days of the national lockdown last year to help borrowers impacted by a chilling in economic activity. The entire state of Maharashtra is in a lockdown for non-essential services and localised and night lockdowns are being observed in many pockets of the country, including the national capital, to restrict the surge in cases. “In today's conditions, there is no need for a moratorium,” Das said during an interaction with journalists after the announcement of the new fiscal...

Apr32021 by adminNo Comments

Individual loan business continues to improve in Jan-Mar: HDFC

Finance

Mortgage lender HDFC Ltd on Saturday said the company's individual loan business continued to exhibit improvement in the January-March quarter 2021 and loans worth Rs 7,503 crore were assigned to its banking subsidiary. "The individual loan business continued to see strong improvements during the quarter ended Match 31, 2021. "During the quarter, pursuant to the buyback option embedded in the home loan arrangement between the Corporation and HDFC Bank, the Corporation assigned loans to the bank amounting to Rs 7,503 crore," HDFC said in a regulatory filing. In the year ago same quarter ended March 2020, such loan assigned to HDFC Bank stood at Rs 5,479 crore. The individual loans sold in the preceding 12 months (April-March) amounted to Rs 18,980 crore (previous year Rs 24,127 crore), it s...

Mar292021 by adminNo Comments

Government not inclined to bear loan moratorium costs

Finance

The government is not inclined to bear the burden arising of the recent Supreme Court judgement on a blanket waiver of compound interest or interest on interest on all loan accounts which opted for moratorium during March-August 2020. "They (banks) are well-poised to handle this and we don't see any space for government relief," said a senior government official. The government has already compensated banks for the interest on interest they had lost on loans outstanding below Rs 2 crore. Analysts estimate the additional cost to reimburse banks for all loans at Rs 7,000-10,000 crore. "There is no directive from the court ordering the government to bear this cost," the government official said on the condition of anonymity. Since there is no deadline to refund the compound interest they hav...

Mar252021 by adminNo Comments

The Small Business Administration is set to triple loan amounts for businesses hurt by Covid

Finance

A small business owner in Chinatown, San FranciscoSource: CNBCBeginning April 6, small businesses and non-profits can apply for up to 24 months of relief, with a maximum loan amount of $ 500,000, the Small Business Administration announced Wednesday.The previous limit for such businesses was six months, with a maximum loan amount of $ 150,000."More than 3.7 million businesses employing more than 20 million people have found financial relief through SBA's Economic Injury Disaster Loans, which provide low-interest emergency working capital to help save their businesses," SBA Administrator Isabella Casillas Guzman said in a statement. "However, the pandemic has lasted longer than expected, and they need larger loans."More from Invest in You:Suze Orman: Don't invest your stimulus checks. Her...

Mar72021 by adminNo Comments

Reliance Home Finance defaults on Rs 40 crore loan repayment to Punjab & Sind Bank

Finance

Ltd (RHFL) on Saturday said it has defaulted on loan of over Rs 40 crore from Punjab & Sind Bank even as the company has enough cash and cash equivalent which it cannot use due to a court order. The Anil Ambani-controlled Reliance Capital's subsidiary defaulted on loan on February 15, 2021, and the current amount of default is Rs 40 crore alongside an interest of Rs 15 lakh. The company's total obligation is of Rs 200 crore on a 5-year tenure secured term loan at 9.25 per cent per annum from Punjab & Sind Bank, RHFL said in a regulatory filing. The company has net cash (including cash equivalent, liquid mutual fund investments, fixed deposits etc) of more than Rs 1,500 crore, it said. "However the delay in debt servicing is due to prohibition on the company to dispose of, alien...