UwidoNews

LIC Housing Finance , today announced a reduction in interest rates for its existing home loan borrowers.

Housing Development Finance Corporation Ltd (HDFC), the multi-faceted finance company, has decided to dilute a maximum 3.5 per cent equity to Qualified Institutional Buyers (QIBs) to raise over Rs 4000 crore.

LIC Housing Finance, the home loan arm of Life Insurance Corp, aims to raise Rs 500 crore through public deposits in 2009-10. The move is part of it strategy to shed dependence on the wholesale funding market.The company last year received permission from the Reserve Bank of India to raise deposits from the public and raised Rs 170 crore.

Auto maker Mahindra & Mahindra (M&M) on Tuesday said it has entered into an agreement with the State Bank of Bikaner and Jaipur (SBBJ) for vehicle finance.M&M customers can avail of a loan up to 85 per cent of the on-road price of the vehicle with a repayment tenure of up to seven years. Interest rates of 12 per cent would be charged on passenger vehicles and 11.75 per cent on commercial vehicles, M&M said in a statement.
http://economictimes.indiatimes.com/News-by-Industry/MM-signs-pact-with-...

Mortgage lender LIC Housing Finance has raised 10 billion rupees via three-year bonds, two sources with knowledge of the deal said on Monday.

SBI (State Bank of India) has snipped interest rates by 25-50 basis points on deposits up to 5 years time period. After several months, this is for second time that India’s biggest bank has snipped term deposit rates.

Five years ago, in November 2003, ICICI Bank was offering home loans at 7.5 per cent interest rate. That was the time when key policy rates of the Reserve Bank of India (RBI) were at low levels and there was comfortable liquidity in the system.

As a part of the Government’ economic booster package, the RBI cut repo rates and reverse repo rates by 100 bps on Saturday, sending a strong signal to banks to cut rates and stimulate growth.
“Credit demand has been slackened. Banks will be urged to cut lending rates, which will come though reduction in deposit rates,” RBI Governor D Subbarao said.

Asia-Pacific finance ministers called for market-oriented exchange rates and said stimulus measures shouldn’t be withdrawn until a “durable recovery is secured.”