[sbinews] Beware of floating rate loans

  • From: sbistcbangalore@xxxxxxxx
  • To: sbinews@xxxxxxxxxxxxx
  • Date: Mon, 22 Dec 2003 20:55:17 +0500

Beware of floating rate loans

Click for more >> 
NEW DELHI: Banks are turning out to be savvier than what the RBI thinks. The 
central bank may have cautioned banks against reckless marketing of cheap home 
and car loans, but banks have already started passing on the entire interest 
rate risk to consumers. 

Consumers flocking to banks for borrowing at cheap interest rates, are ending 
up availing loans for their dream houses and sleek cars, not at the rock-bottom 
rates being advertised aggressively but instead at floating rates. (Would you 
prefer to take a car / home loan at floating rates?) 

These rates are linked to the prevalent market rates over the loan repayment 

Sources said of late banks are convincing majority of the consumers to opt for 
floating interest rates for loans, making them to bear the brunt of any upward 
revision in lending rates in future. 

While nearly 40-50 per cent of the home and car loan portfolio being dispensed 
now are at floating rates, in case of some of the private sector banks this is 
as high as 90 per cent. 

Mailing list (sbinews@xxxxxxxxxxxxx) related information:

News/articles about SBI and Banking related matters published  in the print 
media, Internet etc will be circulated through this Mailing List. 

The messages in this list will help in improving awareness of SBI and its 
activities vis-a-vis the happenings in the Banking industry. This should be of 
help to all staff members of SBI, particularly those who are preparing for 
promotional written tests/interviews/group discussions. Subscription to this 
Mailing List is simple and FREE. Please check the procedure below. Please share 
this information with other colleagues/branches that could be interested in 
subscribing to this Mailing List. 

The messages circulated here should not be deemed to have the official 
endorsement of the SBI or any of its employees. The correct factual position 
may be ascertained from official sources. 

To join this mailing list, just send an email to sbinews-request@xxxxxxxxxxxxx 
with the word 'subscribe' without the quotes in the subject of the email 

To leave this mailing list, just send an email to sbinews-request@xxxxxxxxxxxxx 
with the word  'unsubscribe' without the quotes in the subject of the email 

Archives (old messages) are available for viewing at:
Click on the month-year at the lower left corner to view messages posted during 
that month. 

This is an announcements/newsletter type mailing list i.e. only the Moderator/s 
can post messages to the list. 

This mailing list is maintained and moderated by Sri. R.S.Pai, currently 
working as Chief Manager(IT-Internet Banking), SBI, Corporate Centre, Mumbai. 
Moderator: Smt. S. Vijaya, CM (Training), SBI, STC, Bangalore.
Visit http://rspai.tripod.com for some useful Banking, Reference and Utilities 

Other related posts:

  • » [sbinews] Beware of floating rate loans