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News stories about "borrowers" in India.

Posted on: 08 Feb, 04:14 PM

Early-stage hearing of defaulters better, commercial banks tell RBI

The RBI in a draft directive has suggested an in-person hearing at the review stage, which is the last stage before classification. Lenders hope recovery will improve - at least among the small-ticket borrowers - if a dialogue is initiated at an early or the identification stage. Key Points

These home loan borrowers can change loan tenures, EMIs or switch to fixed-rate during loan resets: RBI

The central bank has also asked the banks and NBFCs to provide those borrowers an option to increase Equated Monthly Instalment (EMIs) or tenure or prepay the full amount or a part of it at any point during the tenure. This move is likely to provide relief to floating-rate borrowers of home, auto, and other loans reeling under the impact of high interest rates. Key Points

Student loan forgiveness: Who is eligible for the $39 billion student debt forgiveness plan?

The Department of Education has introduced a Student Loan forgiveness program that specifically targets borrowers who are enrolled in income-driven repayment (IDR) plans for their federal student loans. Under this initiative, borrowers are required to make regular payments for a period of either 20 or 25 years, depending on the specific IDR plan they are enrolled in. Once this payment period is successfully completed, the government forgives any remaining balance on the loans. Key Points

Banks mull common framework on hearing borrowers before fraud tag

A committee will be set up soon to draw up the framework, said the people cited above. It will detail the process of approaching borrowers, the documents to be submitted and reports to be given to them, along with timelines and the course of action. Key Points

How new RBI rules on floating rate loans benefit home loan borrowers

When the interest rates on a floating rate loan rise, borrowers may either see a hike in their EMIs, or an extension of the loan tenor, or both. However, lenders follow arbitrary practices in this regard. Taking cognisance of the numerous complaints received on the changes imposed by lenders without proper communication or consent of borrowers, the RBI has introduced a new framework for resetting floating rate loans. Here is how the new measures will provide succour to borrowers. Key Points

RBI asks banks, NBFCs to share key facts on loans with all retail, MSME borrowers

The Reserve Bank of India (RBI) has requested banks and NBFCs to provide borrowers from retail and micro and small enterprises with a key fact statement (KFS) detailing loan agreement information, including all-in-cost. The move aims to increase transparency and disclosure in loan pricing by regulated entities. Key Points

Women's access to credit doubles to 14% in five years

India Business News: Credit access to women has doubled in the last five years. The loan penetration among women borrowers has shot up to 14% in 2022 from 7% in 2017. Cred Key Points

Avoid taking loans from microfinance institutions: Assam CM

Assam Chief Minister Himanta Biswa Sarma urged women in the state to avoid taking loans from microfinance institutions due to high interest rates. Assam, which saw a spate of loan defaults and stress in rural households, had signed an agreement with microfinance institutions in 2021 for implementation of a relief scheme. Key Points

The Economic Times

Why a $1.5 trillion source of corporate financing is choking on higher rates

A financial stream that helped fund the world's riskiest companies and grew into a market estimated at $1.5 trillion in the low interest rate years is drying up, as aggressive rate hikes bring tougher borrowing conditions and uncertainty. Key Points

Reset of floating rate home loan EMIs to get more transparent, option to switch to fixed interest rate soo

RBI asks banks to be more transparent in resetting of interest and EMIs of floating rate home loans under external benchmark based lending rate. The banking regulator has also asked the banks to offer the borrowers an option to switch to floating rate. The banking regulator has also asked the banks to be refrain from changing the tenure unreasonably without borrower's consent. Key Points

Fintech loan defaults drop to pre-Covid level: Report

India Business News: Loans provided by fintech companies through digital platforms have shown improvement in delinquency ratio, with a rate of 3.6% in Sept 2023. West Beng Key Points

Easy way to get bank to cut your home loan EMI now without extending tenure

Sharp rise in interest rate has created a big dent in household budget of the most of the home loan borrowers as the EMIs have gone up around 22% for many home loans. As the interest rate cycle has reached close to its peak it is an opportunity for the borrowers to look for good bargains and reduce their home loan EMIs. Here's how to go about it. Key Points

Home loan EMIs may fall 3.5% this year despite RBI MPC holding repo rate

RBI MPC announcements today: A 0.5% drop in your home loan interest rate can save you Rs 3.83 lakh if the interest rate on your Rs 50-lakh loan for 20 years comes down from 9% to 8.5%. This will give much needed relief to old home loan borrowers who have seen their interest rate rise sharply within the last 3 years. Key Points

Have a home loan? Know the latest RBI rules to understand how you can save on interest costs in rising rate scenario

Financial Literacy News: Learn about the latest RBI rules for home loans and how they can help you save on interest costs in a rising rate scenario. Find out whether you should increase EMIs or extend the loan tenure and make an informed decision. Discover the benefits of the new RBI rules and understand how they can benefit you as a borrower. Key Points

SBI offers relief to loan borrowers in Manipur

The State Bank of India (SBI) has offered to extend relief on loans to its customers in Manipur, who have been affected by the ongoing unrest in the state. The relief package includes a moratorium of up to 12 months on equated monthly installments (EMIs), interest payments, and other installments. It will be available to borrowers whose accounts had not turned non-performing assets (NPAs) as on May 3, 2023, a SBI Manipur regional office notice said. Key Points

Analysis: Fintech lenders tighten lending standards, bolstering debt financing

U.S. financial technology companies are tightening their lending standards, a move that has bolstered their access to debt financing from Wall Street investors, according to industry executives. Key Points

Biden administration forgives another $9 billion in student debt

In total, 3.6 million borrowers will have had $127 billion in debt wiped out since Joe Biden became the US President. Key Points

Joe Biden forgives $5 billion in student loan debt ahead of presidential election

As of June 2023, approximately 43.4 million student loan recipients had $1.63 trillion in outstanding loans, according to the Federal Student Aid website. Key Points

2,623 wilful defaulters owe Rs 1.96 lakh crore to banks

According to information provided by the Reserve Bank of India (RBI), 2,623 unique borrowers who are classified as wilful defaulters. These borrowers have a total outstanding debt of Rs 1,96,049 crore with scheduled commercial banks as of March 2023. The data pertains to borrowers with aggregate exposures of Rs 5 crore and above. Key Points

Lenders seek anonymity for officers tagging wilful defaulter accounts

Lenders seek RBI guidance on protecting officers' identities identifying defaulters. Recent court order mandates disclosing committee members. Indian Banks Association seeks advice too. Risks highlighted for officers personally named. Key Points

Home loan rates up, tenures go beyond borrowers’ retirement

India Business News: A year ago, lenders were wooing homebuyers with a decadal low-interest rate of 6. 5%. But in the last 10 months, home loan borrowers have seen a sharp Key Points

US regulators ask lenders to work with stressed commercial real estate firms

U.S. banking regulators are asking lenders to work with credit-worthy borrowers that are facing stress in the commercial real estate market. Key Points

HDFC-HDFC Bank merger: What will change for HDFC home loan borrowers? Will home loan interest rates go dow

HDFC Bank, India's largest private sector lender will complete its merger with its parent, Housing Development Finance Corporation Ltd (HDFC), by June 30, 2023. Now, the question is how this merger will impact borrowers. ET Wealth decodes how home loan borrowers of HDFC are likely to be impacted once the merger is done Key Points

HDFC-HDFC Bank merger: How will it impact HDFC home loan borrowers? Will home loan interest rates go down?

HDFC Bank, India's largest private sector lender is expected to complete its merger with its parent, Housing Development Finance Corporation Ltd (HDFC), by July this year. Now, the question is how this merger will impact borrowers. ET Wealth decodes how home loan borrowers of HDFC are likely to be impacted once the merger is done Key Points

Munnabhai redux: UCO Bank sends sweets to top 10 defaulters

After the country's largest bank, the State Bank of India, another state-run lender, UCO Bank, has come out with a circular asking its branch officials to visit and distribute sweet packets to the top 10 non-performing borrowers. In comparison, in 2018, the Punjab National Bank had the passports of 150 willful defaulters impounded. Key Points

Individuals, businesses are increasingly defaulting on microloans. Both lenders & borrowers at fault

Data from microfinance industry bodies shows microloan delinquency ratios are rising once again, after having fallen consistently 2021 onwards. Lenders must do deeper checks, say experts. Key Points

RBI issues warning against deceptive loan waiver campaigns

New Delhi [India], December 11 (ANI): The Reserve Bank of India (RBI) has raised concerns over unauthorized campaigns misleading borrowers with promises of loan waivers. According to RBI, these deceptive entities are actively promoting their campaigns through print media and various social media platforms, targeting unsuspecting individuals seeking financial relief. Show Full Article Reports indicate […] Key Points

RBI to set up regulatory framework to make taking loans safer

The new announcement comes after RBI, in September 2022, issued guidelines on protecting borrowers. As per the guidelines issued last year, lenders were required to inform customers about the cost of taking the loan. Lenders are now required to issue a Key-Fact Statement to the borrower before any loan is given. Key Points

Post Supreme Court ruling, banks turn wary of declaring accounts as 'wilful default'

Indian banks have refrained from declaring overdue loan accounts as fraud as the Supreme Courts decisions make it obligatory for lenders to provide borrowers an opportunity to represent themselves before naming accounts as fraud. The lenders have made provisions instead of declaring accounts as wilful defaults. The RBI has sought comments from banks on legal and operational issues on the common detection mechanism of wilful defaulters. Key Points

Top 50 wilful defaulters owe Rs 87,295 crore to banks: Finance ministry

The finance ministry on Tuesday said top 50 wilful defaulters including Gitanjali Gems Limited, Era Infra Engineering Limited, REI Agro Limited, and ABG Shipyard Limited owe Rs 87,295 crore to banks and financial institutions. Of this, top 10 wilful defaulters owe Rs 40,825 crore to schedule commercial banks (SCBs), Minister of State for Finance Bhagwat Karad said in a written reply in Rajya Sabha. Key Points

RBI revises OTS guidelines, brings UCBs under ambit

The Reserve Bank of India (RBI) has implemented new regulations governing one-time settlements (OTS), simplifying instructions across all regulated entities. Under the guidelines, the RBI calls for regulated entities to establish board-approved policies to set out the procedure, precedent and a graded framework for staff accountability. The authority responsible for settling must be at least one level higher than the body responsible for sanctioning the loan, and no approval will go to an official that was part of the loan sanctioning process. Key Points

View: Banking sector recovery has given leg up to GDP growth

A good starting point for understanding the contemporary banking landscape in India is the policy response to the global financial crisis (GFC). Rightly anticipating the spillover effects of the GFC, the Indian policymakers announced several counter-cyclical measures starting in August 2008. Key Points