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Prez gives assent to J&K Official Languages Bill

A new law that provides for inclusion of Kashmiri, Dogri and Hindi in the list of official languages in Jammu and Kashmir, in addition ...
The Economic Times
English EditionEnglish Editionहिन्दीગુજરાતી
| 27 September, 2020, 07:24 PM IST | E-Paper


    Home loan enquiries top last year’s level

    The revival is being led by public sector banks, which were the first to recommence operations. Personal loan inquiries from public sector banks are 118% of last year and 102% of the pre-Covid months in 2020.

    Banks plan EMI deferment for home loan restructuring

    The options include allowing EMI deferment for a few months in cases where the borrower ...

    Indian Bank cuts one-year MCLR rate by 5 basis points

    Most of the consumer loans such as personal, auto and home were priced on the basis of ...

    • The relief has come after the Reserve Bank of India allowed the banks to provide loan restricting options to individual borrowers as well. Further, the Finance Minister Nirmala Sitharaman also asked the banks to roll out the restructuring schemes by September 15, 2020.

      The FAQs released by the State Bank of India provide clarity on the list of documents that a borrower needs to submit, if eligible, to get his home/auto/education/personal loan restructured. The loan restructuring scheme is available until December 24, 2020.

      As the moratorium draws to an end, banks have started their collection efforts. Borrowers who opted for the relief now face an even bigger b...

      A status quo on rates could be good news for fixed deposit investors as banks have been continuously cutting rates on deposits for more than a year now. For borrowers though, a pause on rate cuts by the apex bank could mean that banks too will pause cutting interest rates on loans.

      While deciding against extending the loan moratorium beyond August, RBI had also announced a one-time restructuring window for individual and corporate loans. For home loans, banks are expected to provide a tenure extension of up to two years.

      Post the cut, EMIs on the loans linked to MCLR will come down giving relief to the borrowers. With the reduction in rates, ICICI Bank's one year MCLR is 7.45 per cent, and six month MCLR is 7.40 per cent.

      The mortgage lender said it’s total loans under moratorium was below 25%, out of which 60% of the construction finance book was under moratorium. From its total construction book of Rs 13,000 crore, upwards of Rs 8000 crore of loans are under moratorium. The silver lining is more than 46,000 borrowers largely retail, have started paying their dues, Mohanty said.

      The State Bank of India latest announcement will help the borrowers whose loans are linked to the marginal cost of lending rate (MCLR) to be able to benefit from the future policy rate cuts from the Reserve Bank of India (RBI) faster.

      Typically, home loans and credit card outstanding display growth throughout the year. However, the first two months of this fiscal saw the credit card outstanding shrink by Rs 15,207 crore to below the Rs 1-lakh-crore level to Rs 92,887 crore.

      Lenders, including SBI, are working on restructuring options for home loans where the overall tenure of the loan does not extend by more than two years, even after relaxing the repayment schedule.

      Although not back to the pre-COVID-19 levels seen in January and February 2020, inquiry volumes have started to recover from their troughs in April and May 2020, and in July and August 2020 were similar to levels seen during the same period in 2018m, a report by Transunion Cibil, said.

      The residential sales-to-supply ratio has improved to 1.36 currently, as against 0.63 in 2014, as developers have started focusing on clearing the unsold stock rather than launching new products, according to a report by FICCI-ANAROCK.

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