CBI is reportedly insisting on what could be a retrospective application of last year’s SC ruling that a borrower must be given a hearing before the account is classified as ‘fraud’ and a “reasoned order” must follow if such an action is taken. But bankers are unwilling to go back to these past matters.
The study asserts that incorporating DTI limits, coupled with existing restrictions on Loan-to-Value (LTV) ratios, can serve as effective macroprudential tools.
Borrowers should brace for higher interest rates, potentially stricter lending criteria, and an overall more challenging environment for obtaining personal loans.
The fintech lending industry continues its upward march with increasing disbursements, showing a promising future for the industry. A recent report by Home Credit revealed that most borrowers today are online-pro and prefer online channels when opting for loans.
If you are buying a washing machine, a discount will be offered if you buy it on credit (EMI) over debit. I think, lenders should not become the digital avatar of Sukhi Lal by encouraging the customer to borrow, and then punish him through heavy recoveries and maligning his credit reputation. Considering the rise of retail credit and specifically unsecured lending, RBI has tightened lending norms. Governor Shaktikanta Das said that lenders should not charge usurious rates. Let me explain.
As a consequence of RBI move to tighten consumer, the availability of unsecured loans may shrink, and lending norms for these segments could become more stringent.
The report emphasises the evolving preferences of borrowers and lenders, signalling a shift towards digital financial services.
While the retail segment is the fastest growing, the risks are building up with the possibility of repayment ability of some sections of the borrowers being tested, it said.
State Bank of India (SBI), country's largest lender, has raised its marginal cost of funds based lending rate (MCLR) by 5 basis points (bps) across all tenures, a move that will lead to an increase in EMIs for borrowers. With the increase, EMIs will go up for those borrowers who have availed loans on MCLR, not for those, whose loans are linked to other benchmarks.
Reports have showed a significant uptick in women borrowers in India with growth at 19% CAGR, versus men at 14% in the next 5 years. On the occasion of International Women’s Day, we bring you the details of borrowing behaviour and other trends witnessed by women in the financial space:
Home loan rates have risen sharply in the past fi ve months, from 6.5% to 8.25%. A 20-year home loan taken in 2019 at 6.7% will get repaid in 21 years, even though EMIs have been paid for three years.
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