Although the government has finally announced its scheme on waiving interest on interest on moratorium loans, the relief to small borrowers is minimal. You will still need to pay your principal and original interest.
The move will ensure that projects are evaluated individually before being declared NPAs; buyers no longer will have to wait for an indefinite period for their homes and developers will get greater payment flexibility.
RBI Monetary Policy: Governor Shaktikanta Das announced that the central bank would conduct open market operations (OMOs) in State Development Loans (SDLs).
As many as one-third of developer loans are categorised as sub-investment grade. Substantial delays and stranded projects have led to deterioration in the financial health of developers
Larger housing finance companies offer interest rates in the range of 7-7.2 per cent, but several other NBFCs charge much higher rates
Startups like FamPay and Slice are coming up with products tailored for students and young professionals. Can they get these consumers to stick around and expand their product suite as they grow up?
Sectors such as hospitality, automobiles and aviation might get a breather on loan repayments for a few more months
Cars24 has launched a new financing product to help car owners avail loans at 100% of the current value of the vehicle.
We expect a drop in approval rates for all major retail products
If you can, it is better to keep paying your EMIs and not take the moratorium
RBI’s move to bring in more transparency on lending ensures that borrowers know who they are dealing with, upfront
When you borrow, you’ve got to repay. But lenders cannot humiliate you and use aggressive methods for recovery
A win-win proposal would be offering a ‘prompt payment’ discount to all borrowers who pay all their instalments on time after availing the moratorium facility.
The Mumbai-headquartered lender's country head for consumer finance Parag Rao said changes in lifestyle due to aspects like lockdowns and work from home has created additional demand for items such as television sets, laptops, Wi-Fi routers and even vacuum cleaners, which the bank is funding at present.
"We ask the applicants about the layoffs, pay cuts and losses in business due to coronavirus related lockdown before accepting their loan applications," an official in the LIC Housing Finance Limited told PTI.
Banks should redesign their mix of secured and unsecured lending to take care of their assets, TransUnion Cibil has said.
The value of gold in India is estimated to be 40 percent of the nominal GDP. Monetising 10 percent of this will ensure a liquidity of Rs 13 lakh-crore, which can be used to overcome the crisis
If you default, the insurance company would simply foreclose your policy and recover its dues
NBFCs have also demanded for extension of the Reserve Bank of India's moratorium to them
If your home loan is linked to the MCLR or Base Rate, move to repo-linked lending rate to reduce your interest outgo
Any type of loan should be your last resort, especially in these times of salary and job cuts
Moratorium period to be excluded for NPA recognition
The company based in Herzogenaurach, Germany, said Tuesday that it was suspending dividends, share buybacks and 2020 executive bonuses as a condition of getting the loan “to bridge this unprecedented situation.”
A marginal increase in your EMI after the crisis can offset higher interest outgo arising out of moratorium
"A large section of our population is self-employed. We expect a bounce back since this self-employed low-income segment is perennially credit-starved," said Harsh Shrivastava, CEO, Microfinance Institutions Network.