Reserve Bank
A person familiar with the plan told that there is a possibility that banks will be ordered to scrap penalty on pre-payment of all retail and small corporate loans and do away with fines for failure to maintain minimum balance if the recent ‘nudge’ does not work by the Reserve Bank. Since the entire system [...] Continue Reading »
Despite the higher interest rates and economic slowdown, housing prices remained firm followed by limited supply, according to a Nomura report. The supply has also been limited for fewer projects in key markets like Mumbai, Delhi and other dues to the government approval delays. A recent report by the Reserve Bank stated that the house prices [...] Continue Reading »
The Reserve Bank asked urban co-operative banks (UCBs) to stop levying penalty on pre- payment of home loans on floating interest rates with immediate effect. Earlier this month, RBI had also asked the commercial banks to stop charging such penalties. The removal of foreclosure charges or pre- payment penalty on home loans will lead to [...] Continue Reading »
The demand for property has been robust in Chennai in terms of commercial and residential properties. The demand for apartments in Chennai are increasing as the cost of properties are in budget range of Rs 20 lakh to Rs 40 lakh. The builders association has pointed out that there is a shortage of 24,000 homes [...] Continue Reading »
Assured returns is what the developers are using as a bridge to attract the property buyers. This is happening only because the Reserve Bank has put down certain restrictions on developer transactions and norm is intern affecting the home buyers’ credit lines. Developers have started encouraging “Assured returns” concept in order to draw home buyers [...] Continue Reading »
Cost of borrowing has gone up, as a consequence sectors sensitive to interest rates are likely to be affected relatively more than others. To tame inflationary pressure, the Reserve Bank has hiked key policy rates 11 times since March 2010 by a cumulative 325 basis points. This led to a rise in borrowing cost which [...] Continue Reading »
