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.

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.

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.

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.

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Once you apply for a loan and fill in the form , the bank normally gives you two options to make a repayment either through (electronic clearing systems ) ECS or a cheque payment. Customers normally choose an ECS payment as it is hassle free. An ECS payment is done by the bank . It is a transfer of payment from one bank to another without the involvement of the customer.

We may miss our loan repayment at times due to unavoidable circumstances , like an unexpected medical expense may come up, loss of job , or any other unforeseen situation. Due to this default our credit rating gets affected. And in future availing of any kind of loan or credit card can be difficult.

Rates of interest is reduced by PNB Bank

New Car Loan rates by PNB

Now after SBI, Punjab National Bank also reduced the rate of interest on car loan. Now PNB offer 10.5% rate of interest on new car loan, earlier it was 11%-11.5% & now it is 10.5%-11% depending upon the buyer creditworthiness.

SBI Offer auto loan at 10% for one year

After reducing the rate of interest in home loan, State bank of India now offer the auto loan at a fixed rate of 10% for one year .It will be applicable only for new car.

Your bank loan is not sanctioned?Wonder why?? Because banks are now closely watching your credit history. This applies even if you have defaulted in paying a minimal sum on a loan taken several years ago.

Getting yourself a new car? Need details about a car loan? Here are few points to remember while applying for a car loan. All lenders provide some cash discounts. You can always play off one lender against the others to some extent.

Public Sector banks are tying up with many Leading Car Manufacturing Companies for financing proposals. The PSU banks would keep only 15% as the margin money. Most of the Private Sector banks are caught up in the Global Financial Crisis and recession. Auto loan industry are on a Boom with all the PSU banks stressing on auto loan market in the coming time.

Our country's second largest private sector lender ,HDFC Bank, has decided to slash interest rates on personal and commercial vehicles by up to 150 basis points.In addition, the bank will also cut interest rates on corporate loans and wholesale credit, a move that will benefit small and medium enterprises and large companies.

Your first car is always a great emotional value. To acquire your first four wheeler , one does alot of research and planning. Checking all the models and finance companies, and then you settle for the one best suited to you and your budget.

Nowadays availing of a loan could be very simple and the best option to meet your needs. But are we take the loan for the right purpose? This is the right time to ask this question. The interest rates on most floating rate loans, be it home, car or personal, are up by almost 3-4%. On the other hand, cost of living has gone up thanks to rise in inflation.

Securing any kind of loan nowadays is much easier and simpler. Our needs and desires are hence full filled and accomplished. Almost every salaried or self-employed individual has an EMI commitment. This is common especially in the middle-class sector mostly in the metro cities.

In India the past few years have seen a rapid growth in consumerism. The access to and easier availability of more funds has meant aggressive buying by people across the board. The once thought luxury of owning a car is no more just a dream. Any individual from any walk of life can now own a car.

Car sales are down due to increasing intrest rates.Banks and Car companies to boost sales are cutting cost at dealers end to pass on some to the prospective customers.

EMI is the amount a loan taker pays every month to repay the overall loan. This amount can typically be broken down into two components

- Principal repayment :

ICICI Bank is the second amongst all the companies listed on the Indian stock exchanges in terms of free float market capitalisation. The Bank has a network of about 1,308 branches and 3,950 ATMs in India and presence in 18 countries.

The bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary.ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses.