RBI's new guidelines have given the domestic scheduled commercial banks a big fillip in their branch opening plans. As per the new guidelines, domestic scheduled commercial banks do not need explicit permission(license) to open new branches in cities with less than 50,000 population.
what this means for some of the banks
- PNB can open 440 more branches this year without bothering about RBI approval
- UCO plans to open 140 branches this year but would need licenses for only 89

Clearly, RBI wants the financial system to reach smaller towns & cities and this would be a big step in that direction.

NFS (national financial switch) which manages more than 50,000ATMs and handles more than 2.5 million transactions per day has decided to bring down the per transaction fee to 80 paise.
This amount was initially suggested at 100paise but most participating banks had protested indicating that it was way too high. Even now the transaction fee is much higher than other networks and it would put a strain on the CASA books of most banks.

The Home Loan market is getting hotter with each new scheme launched by the biggies in the space. And it seems the dual rate game is here to stay.

Axis bank has just launched ‘Power Advantage Home Loan’ scheme- wherein customers can lock in their home loan rates at 8.25 per cent for the first two years followed by a floating rate.

The Raghuram Rajan Committee has recommended that RBI allow private companies to launch Local Area Banks (LABs) which will have a jurisdiction of 3 contigous districts.
This move which is aimed to increase the population under banking system will in all probability see a lot many financial institutions mushroom up in the semi-urban & rural areas.
The LABs will have an option to become small finance banks with a capital base below Rs 300 Crores if they show a good track record & want to raise their own deposits.

HDFC has followed SBI in launching a dual rate offer for Home Loans.

SBI had offered- 8% for 1st Year | 8.5% for 2nd & 3rd years | From 4th year the consumer had a choice between fixed & floating (SBI's floating rate is 275 basis pts beloe its benchmark rate)

Now HDFC has come into the market which sounds very similar- fixed rate of 8.25% till March 2012 and then a floating rate which is 500 basis points below the PLR.

HDFC had made a lot of noise about the SBI scheme when it was launched. They had attacked the scheme as being opportunistic and a sure shot path to higher default ratio in the portfolio.

According to most lenders October 2009 was one of the best months in terms of the quantum of loan disbursed.
The acceleration in offtake of loans is primarily driven by secured lending in housing & auto loan sectors and unsecured lending (personal loans) is yet to pick up to its previous volumes.

The increase is attributed to rising salaries in India Inc & the pent up demand for homes & cars- most people had been deferring their heavy purchases till the dark clouds of slowdown had passed.

E.g. HDFC bank disbursed retail loans worth Rs 3000 Cr in Oct 09, whereas their previous best was Rs 2700 Cr in June 2008.

At a meeting between the bank heads & the finance ministry, the banks expressed concerns that there might be a lot of risk in the Education Loans portfolio.

They feel that the biggest concern is with people taking loans to study abroad as
a. Traceability of the person is a challenge
b. A lof of these people take loans with out a guarantee.

these banks have hence gone slow in lending to this sector and have asked for an insurance cover (similar to the one in Home Loans) to ensure more aggressive disbursals of Education Loans.

As per Indian Bank’s Association new guidelines- Days of free ATM usage came to an end on October 15. From now on any transaction that you do on another bank’s ATM would cost you anywhere around Rs 20 . Also withdrawals will face a limit of Rs 10,000.

The guidelines, also recommend that the banks can offer
- savings-account holders 5 free 3rd party withdrawals every month and charge from the 6th transaction onwards.
- Current account holders can be charged the fees, which ranges from Rs 18 to Rs 20, from the very first transaction.

Axis Bank, which has the third largest ATM network in the country, has decided to not charge any customer for third-party withdrawals. A part of the bank’s strategy to attract low-cost current account and savings account (CASA) customers.

September 2009 saw the Car Loans market reaching a new high with Rs 3400 Cr worth of loan disbursals. This is almost 25% higher than the monthly average taken over last 4 months.

Commerical property loans will see a northward movement with the new RBI guidelines wherein the risk load has been increased.

Axis Bank has slashed the car loan rates in Hyderabad, Bangalore & Chennai to 9% for all vehicles. It has also waived off the processing fees and this scheme is applicable upto the end of this month.

SBI had already started being aggressive in the Car loans market. In June 09, SBI had slashed its car loan rates to 8% for the first year and 10% for the next two years. For the remaining years, borrowers would be charged 25-75 basis points below the bank's PLR.
Axis Bank's rate in comparison are fixed for the complete tenure of the loan.

Similarly HDFC bank had reduced its rates by 50 basis points to 10.5-11% range.

The Banking Codes and Standards Board of India has issued a directive to all its commercial member banks to be more transparent with regards to retail loans.

Few specific directives that loan seekers should be aware of are:

1. Inform all those who avail Floating rate home loans, of the reference rate to which the floating rate is anchored.

Citi Bank Personal Loan

Following are eligible for citi bank personal loan:

• Salaried Individuals include Salaried Doctors, CAs, employees of select Public and Private limited companies, Government Sector employees including public sector undertakings and central, state and local bodies

Singapore Airlines with ICICI Bank have now launched a co-branded credit card- ICICI Bank Singapore Airlines Visa Platinum card in India. Singapore airlines, a south east Asian airline has launched a credit card first time in India.

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Few things to remember while transfer your Home loan to another Bank

In the last couple of months all the Banks reduced their rate of interest on Home loan and offer the home loan with attractive rate of interest for fresh borrowers & for existing customers also. As a result many existing home loan borrower want to switch off their home loan to another bank.

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Debt consolidation are of two type- secured debt consolidation and unsecured debt consolidation.

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Why Loan Against Property?

Loan Against Property is a secured loan group wherein the property of an individual is used as a security. Borrower gives a guarantee to the bank by mortagaging his property & bank funds a certain percentage of the property market value.

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Loan Against property is the ideal line of attack to use your property in many ways. It is the perfect way to fulfill your aspirations.
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Features :

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Citi Bank Home Loan Features & Eligibility

Now it’s the right time to buy Home loan & dream of your own home in India is possible.Citi Bank offering you the home loan with its attractive rate of interest and give preferred choice to their customer’s also

HSBC BankHome Loan

If you think about your dream home so this is the right time to fulfill your dream & HSBC Bank help you to fulfill your dreams by providing you the Home Loan with its attractive features & benefits

HSBC Bank Features & Benefits

• HSBC bank offering loan ranging from Rs.5 lakh to up to Rs.3 crore with a maximum tenure of 25 years

LIC Housing reduces Home Loan Rates Third time effective from April 1

One of the leading housing finance company LIC has slashed down its home loan rates third time on Monday which will be effective from April 1. The rates has been reduced for the existing customers by 0.75 percent effective from April 1.

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