A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. A mortgage loan is a secured loan in which the collateral is property, such as a home.
A likely cut in lending rates by banks may fall short of borrowers’ expectations. While some banks may do a token rate cut this week, and
lower the rates for small-ticket home loans, many banks will take a call on bringing down rates across the board after the advance tax outflow, which takes out the liquidity from the system.
Most banks are expected to bring down
interest rates by end-December. Rates on home, auto and consumer loans may come down less than the one percentage point cut in key policy rates announced by RBI on Saturday.
Till now, only ICICI Bank has announced a cut for a category of home loans. While the interest rate has been lowered by as much as 1.5 percentage point, the lower rate is only for new borrowers taking loans up to Rs 20 lakh. Most banks are not in a hurry to lower lending rates for retail customers considering that delinquencies on retail, SME and corporate loans are rising.
read more
0 comments
Post a Comment