| CRR hike spurs home, personal loan rates
MUMBAI, MARCH 30 (PTI) — Home, personal and other loan rates are set to go up as Reserve Bank hiked key rates of cash reserve ratio (CRR) by 0.5 per cent in two phases and Repo rate by 0.25 per cent in a bid to contain surging inflation. While CRR will go up from 6 to 6.25 per cent in the first phase to be effected on April 14 and then to 6.5 per cent in the second phase from April 28 to absorb excess liquidity of Rs 15,500 crore from the banking system.The Repo rate, which is used by banks to borrow from RBI, has been hiked by 0.25 per cent to 7.75 with immediate effect, making borrowing costlier.RBI has already hiked CRR twice in two phases each and Repo and reverse Repo rates several times as outlook inflation assumed criticality hovering over 6 per cent.Only in February and March , RBI had hiked CRR in two trenches of 0.25 per cent each to mop up Rs 14,000 crore with the economy showing signs of overheating in the face of high GDP growth of over nine per cent.Bankers were quick to react sharply to the move saying it will curb growth and affect profitability and indicated that interest rates on home, personal and other category loans could go up.The RBI also reduced by 0.5 per cent the interest rate applicable on eligible CRR balances— the amount of reserves between statutory minimum CRR and CRR prescribed by RBI.The interest rate on eligible CRR will now be 0.5 per cent from the present one per cent per annum, with effect from fortnight beginning from April 14.The move comes three weeks ahead of the annual monetary and credit policy on April 24 and this is the second time that the key CRR rates have been hiked since the last credit policy in January.As Prime Minister Manmohan Singh, Finance Minister P Chidambaram and RBI Governor Y V Reddy have repeatedly indicated that soaring prices were a matter of concern and today's measures were aimed at containing inflation on an urgent basis.“In the light of the current macroeconomic, monetary and anticipated liquidity conditions and with a view to containing inflation expectations it was critical to take demonstrable and determined action on an urgent basis," the RBI said in a statement.The statement said that liquidity adjustment facility operations announced on March 2 would continue besides the policy of withdrawal of semi-durable and durable elements of liquidity through treasury bills and dated securities under mss.Active monitoring of macroeconomic, overall monetary and liquidity conditions would continue and all monetary policy actions would be considered in response to evolving situation, RBI said.
Enhances Content and Revenue Model of Marquee Personal Finance and ...
SAN FRANCISCO--(BUSINESS WIRE)--InterSearch Group, Inc. (AMEX: IGO), a leading operator of industry specific destination portals and provider of Internet search services announced today that it has rolled out the enhanced edition of its marquee personal finance online property, www.Banks.com. Banks.com is an online consumer finance marketplace aggregating information on a broad range of products and fees including: mortgages, credit cards, auto loans, college financing, debt management, retirement, and more. The online property now also features a wealth of resources and advice on personal finance topics in a convenient user format. Banks.com generates revenues through a hybrid model combining pay-per-click and affiliate arrangements with advertisers and paid search. "We acquired Banks.com in September 2006 to create a preeminent online consumer banking one-stop marketplace built around a domain name that is synonymous with that offering.
Why you should never take a loan from your bank
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Aid Your Home Loan Qualification!
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