Congress seeks cut in home loan rates

NEW
DELHI: The United States Congress on Wednesday made a strong supplication for a cut in the interest
rates on place loans. The plea
was made by political party spokesman Manish Tewari who asked the Banks to follow the
example of Central Depository Financial Institution of Republic Of India and Allahabad Bank, which have got reduced interest
rates on place loans. Following
Finance Curate Phosphorus Chidambaram's advice, other banks, including SBI and UCO
Bank, had already reduced involvement rates on place loans. However, some banks,
especially private lenders, are still holding the involvement charge per unit stating that
they would wait till the Modesty Depository Financial Institution cuts depository financial institution rate. Tewari said the Indian Banking
Association (IBA) should immediately name a meeting of its members and inquire them
to cut down lodging loan rates. Despite a edge cut,
interest rates on place loans are hovering around 11-12.5 per cent as against
8-8.5 per cent two old age ago. A cut in involvement rates can
provide alleviation to billions of people across the country, he said. Tewari expressed the hope that
the measurements being initiated by the authorities and the run batted in to incorporate inflation
will have got a beneficial effect. His statement on the issue
came a twenty-four hours after the AICC told the authorities that terms rise is "not a good
thing" and asked it to take pressing stairway to check up on the terms rise. It also came at a clip when
the Congress-led alliance is increasingly under onslaught from friends and foes
alike on terms rise.

Allahabad Bank to cut interest rate by 25 basis points

MUMBAI:
Allahabad Depository Financial Institution will cut down the involvement charge per unit on lodging loans by 25 footing points
for both floating and fixed term loans up to Rs 20 lakh. The charge per unit cut follows
reduction in cost of incremental sedimentations by Allahabad Depository Financial Institution and a encouragement to loans
among little and medium category
borrowers. The cut is effectual April 1 on all
fresh sanctions. The lower limit involvement for 5-year time period will be 9.5 per cent per
annum and upper limit 10.5 per cent for 15-25 old age in PLR-linked
loans. The depository financial institution is also considering further
reduction in BPLR to do all BPLR-linked loans more comfy for its
borrowers. If approved, the projected decrease in BPLR will also become
effective from April 1.

SBI cuts loan rates, others set to follow

NEW
DELHI: Here's some good news for borrowers. India's biggest bank, State Depository Financial Institution of
India, have cut its premier loaning charge per unit by 0.25 per centum point to 12.50%. This
will consequence in less involvement rates on all loans offered by it, including
housing and consumer loans. Now that SBI have done so, other Banks are likely to
follow. SBI's determination will
also profit existent place loan borrowers who have got borrowed at floating rates. Interest rates on floating charge per unit loans will be reduced by 0.25 percentage
point. In the last few days,
Canara Bank, Allahabad Bank, HDFC and PNB Housing Finance have got cut lodging loan
rates by 0.25-1 per centum points.

Reverse mortgage products receive modest response

The
innovative contrary mortgage product, announced by finance curate Phosphorus Chidambaram
in the Budget for 2007-08, have received a modest response from the targeted
borrowers. This is because of ambiguity in taxation issues, and even cultural taboos. But since there is a important ageing population who could potentially benefit
from this scheme, Banks are hopeful that the strategy will acquire popular in due
course. Chidambaram had stated
that National Housing Depository Financial Institution (NHB) will present a contrary mortgage strategy for
senior citizens. After the contrary mortgage guidelines introduced by NHB,
several Banks and Deewan Housing Finance have got launched the strategy for senior
citizens. The Banks that have got launched the strategy are Punjab National Bank,
State Depository Financial Institution of India, Depository Financial Institution of Baroda, Allahabad Bank, North American Indian Depository Financial Institution and private
lender Axis Bank. Under this
scheme, the place is pledged with a bank, which pays a monthly installment to
the individual for a fixed clip period of time. At the end of these payments, the
property belongs to the lender. Housing regulator NHB have written to Central
Board of Direct Taxes, asking that the loan given to the senior citizen should
be exempted from Income-Tax.

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Officials say
that this is a demand driven merchandise and is not marketer driven. It is available
for anyone who wishes to choose for this product. The quality of the underlying
security championship a mortgage is important, they said. Going forward, the product
can also given rise to trading in mortgage-backed
securities. Sir Joseph Banks also need
clarity on the provisioning they necessitate to do for such as loans.