why I should pay more for the loan taken long back? If reserve bank increase any rate, doesn't mean that bank is going to take money for me from someone again and again.. But bank keep increasing our existing loan rate?? For a new loan that can be understood since they have to borrow money from RBI or someone.. but why to increase interest rate for the already lended loan??? RBI is another idiot gov agency..
Re: why I should pay more for the loan taken long back?
by manoj rawat on Sep 20, 2010 12:41 PM
Do RBI also charge arbitrarily to banks on the loans they have taken from it , lets say, 5 years ago? If loan taken by ICICI from RBI in 2005 is on 5% intrest rate and today if RBI is giving money on 8% intrest rate does it means that ICICI bank will also have to pay 8% intrest on the loan taken in 2005?
Re: Re: why I should pay more for the loan taken long back?
by Gayathri Rajasekhar on Sep 20, 2010 01:38 PM
Banks don't play around with a single loan, but a sum total of all loans put together. ICICI pays RBI depends on the total outstanding that ICICI has and this includes the loan individuals take. So, individuals need to share the extra load that RBI has put on ICICI, unless ICICI decides not to pass on the burden to the individuals this way (they may find some other way to compensate for their extra outflow).
If one takes a loan on "floating interest rate" at the time of taking it, then he can't crib when the rates go up. Floating indirectly implies 'increasing', though it may also decrease if those taking loan are lucky
most of the ministers have their money in property. People have to pay tripple the actual cost of a flat. Banks must not provide home loan more than a limit. You will see the property price coming down.
IF THE GOVT. IS V SERIOUS ABT CONTAINING THE INFLATION. LET THEM FIRST STOP THE LOANS TO REAL ESTATE SECTOR AND SEE , HOW THE RENTS AND FOOD PRICES , IT WILL 100% COME DOWN. THE POLITICAL CLASS ALL OVER INDIA IS INVOLVED IN LAND DEALS WITH SOME WAY OR OTHER THATS THE REASON THE GOVTS IS NOT PREPARED TO TAKE STEPS AS FAR AS THE REALTY SECTOR IS CONCERNED
Re: FIRST LET THE BANKS STOP LOANS TO REALTY AND SEE THE RESULTS
by sasi on Sep 20, 2010 12:53 PM
because of our growing population , people wont find places to get rented houses. this will increase rents to sky heights :)
Best way to contain inflation is not by hiking the interest rates but to limit the loan amount ratio to price of asset being purchased.
Currently, banks provide loan upto 80-90% of asset value and thats the first and foremost thing that is casuing prices shootup in high pricd assets like realty. If this ratio comes down to say 40-50 %, buyers will be forced to first earn sufficient amount of money and then take a loan.
Ongoing practise have large bad effectes, already faced by US guys which will bring whole economoy down.
Are our finance guys wo are in power so idiot not to address the core reason of inflation of main assets at least?
Re: Best way to contain inflation
by ranjit uchil on Sep 20, 2010 11:08 AM
That is the correct approach, but unfortunately Banks & the Realty Sector are hand in glove...the very reason we have such bloated prices in Realty is because Banks finance almost 90% of the Selling Cost of the Flats. Instead in a way RBI should regulate the Loan to Asset value ratio for all Banks Private or PSU..
Re: Re: Best way to contain inflation
by manoj rawat on Sep 20, 2010 12:44 PM
yes important is to regulate the real estate rates not increasing the home loan rates.. rates in reality sectors have increased upto more than 300% in last 5 years...
Re: Re: Re: Best way to contain inflation
by sasi on Sep 20, 2010 12:55 PM
because of our growing population , people wont find places to get rented houses. this will increase rents to sky heights :).
That's why he is Aam. He wants both - high deposit interest rates as well as low home loan interest rates. Little does he know that you get one at the cost of the other. That's how economics works. The foolish aam aadmi thought that the guy they elected as the PM has got some magic wand that other PMs did not have. The media called that wand, Manmohanomics. He used this wand in such a way that now we have both the depositors as well as the borrowers crying. Aam aadmi has to rise above his aamness and take a look at the bigger picture. The bigger picture is that even at the risen interest rates, we have having negative real rates. This is a protectionist mechanism. Just that while in the past protection/subsidy was provided to ordinary people, now the protection is being provided to highly leveraged builders' lobby.
First of all kill all these Bloody Indian Politicians . They protest to hike there salary but do not pay attantion on common man. daily need commodities price increases very high. Look inflation reate is at peak. But Govt is not intrested to pay attantion. All the Govt agriculture department in major agiculture states is Vacant like in Punjab Haryana, UP, and MP . But these bluddy Govt doesnt pay attantion. Next time i request all the Indian not to cast their Vote for such type of G.A.N.D.U's. Jai Hind
Re: Hike in Intresest Rate ?
by rinku on Sep 20, 2010 10:34 AM
Govt must take steps to decrease the price of Vegitables, and cerals , fruits. These are daily need commodities. These are shortage . So Agriculture Department of all the states must recruit vacant postion of ADO, HDO and other similar postion so that they can implaint their ideas for producing more of vegitable and cerals.
Govt please do pay attandtion for the recruitments of Agriculture department. I am common man.
