Banks can formulate a policy of loan for home also in line with what has been now suggested for car loan by State Bank of India ( news items given below ).At the time government of India may think of stricter and the toughest KYC norms and the highest standard of transparency for buy and sale of landed property , residential or commercial. As of now one can purchase any amount of gold and any number of house, flats and landed property ,there is no check point and there is no taxation or fatal legal action even if the total of such ill-acquired properties is hundred times of actual income of such person .
Lastly one may ask why government is silent and why not builders are stopped in their task of conversion of black money to white money when everyone in the government knows it very well that a flat sold in ten lac rupees in the books of the government is actually worth more than fifty lac.?
Why government remains silent on black money transactions going on in large scale in real estate business in nexus with government officials, bankers and politician?
If government is able to recover the actual stamp duty honestly on correct value (not what is booked in government record ) on all sales of properties taking place in India, I hope the revenue so collected by various state governments and central government will meet the entire burden of all state budgets and central level budgets.Not only this , GOI will also be in a position to reduce creation of black money and force the black money keepers either to stop ill methods of earning money or to keep them in banks for further investment by banks in creation of job opportunities.Not only this , if GOI becomes honest in true sense in containing black money , persons like Ramdeo, Arvind Kejriwal, Anna Hazare will have nothing to protest .
Unfortunately in the view of politicians like Chidambram , Manmohan singh ,Ahuliwalia who are key rulers and who are said to be masters of Indian economy believe in giving total freedom to economy even if the goods and services valued Rs.100 are sole at the price of Rs.1000 in the market.They do not know or do not like to understand that liberty without check point may lead to total disaster.
If petrol and diesel prices are hiked the leaders of this country especially those of Congress Party will feel they are following the policies of reformation in true sense.If someone ask them to recover the real stamp duty of sale of landed properties and reduce tax rebates and subsidies allowed to rich business houses in the name of stimulus package or on the pretext of subprime crisis of USA , they will feel as if they are going against the policies of reformation. If FDI and FII are given freehand to evade taxation , it is treated as reformation .
And perhaps this is the reason that Indian economy is now facing the severest crisis after freedom and no solution is visible from the prejudiced eyes of the said brand of politicians who know the art of borrowing and living lavishly without caring about the future generation .They like FDI and FII to feed the country looted by them to serve their self interest only in the name of democracy and secularism.
I am happy that now State bank of India has thought it fit to say that "U Can Get Car Loan Only When Your Income Is Above Six Lac Per Annum". All other banks should also ponder over this idea. Rather I would like to say that all banks should also think about the eligibility for home loan afresh.
It is unfortunate that during last few years in quest of surpassing set target under retail segment ,banks have started lending liberally to Home Loan Seekers ignoring all morals. ethics and spirit behind the policy of liberal lending allowed by Government of India.It is banks who are helping to a great extent in conversion of black money into white money.And it is unfortunate that the Netas who are indirectly beneficiary of this unholy functioning are silent spectator of all evil lending taking place in not only private but public sector banks too.'
Loan amounting to several lac and even crores of rupees are sanctioned for purchase of Home. There are several such rich persons in this country who have hundreds of flats in the country and who have availed loan from various banks. In this way they are not only contributing rise in prices of home and causing trouble to poor and middle class people they are extinguishing or reducing the scope of lending to poor and middle class people .
Besides such rich people are converting their black money to white money . They but the property in one crore and register the same property in thirty or forty lac , thus saving stamp duty and absorbing their black and ill-earned money .If is such rich people who help builders in raising the prices of flats and apartment to a great extent. They book ten and twenty flat at reasonable price at the start of the project and then sale at much higher price in a year or two when the project is on the verge of completion. Builder send the news in the market that there are only a few rooms unbooked and thus raises the demand and price abnormally. IN this evil task bankers extend full support to builders and rich people who book the flats and commercial shops in bulk.
And the most painful is that government formed by corrupt politicians also make policies in support of evil builders and home loans seekers but never suggest builders to keep price reasonable and affordable keeping in tune with their actual cost added with well defined profit margins.Government of India builds pressure on bankers to lend money to builders at liberlised terms and give all tax benefits to those who avail home loans from banks. GOI has not tried to investigate the misuse of tax exemptions to Home Loan Takers which have been taking place since long.
If a salaried person or a business house or a political person or a professional whose annual income is less than ten lac per year can think of availing a loan of rupees thirty or forty lac and then buying a home of rupees fifty lac to more than one crore until he or she has some extra income , some black income and some ill-earned accumulated money which helps in payment of black money to builders and which help him or her in meeting their family expenses even after paying hefty amount in EMI.
I have no doubt in saying that black money or ill earned money by unscrupulous persons and groups are mostly absorbed in landed property only (in addition to Gold and jeweleries).
If banks and the government of India can do something in containing and reducing to bare minimum the above unholy and evil trend in Real Estate Sector as also in Banking Sector , it will be a great help to poor and middle class people and help in keeping price in limit. It will be far better if long awaited Real Estate Regulating Authority is established immediately to stop unhealthy growth in real estate and banking sector.As long as black money is allowed to twist and tune the price of goods and services in the market , honest and hard workers cannot dream of a good house to live in . GOI may preach sermons but in fact ministers support rich more than the poor.
Earn at least Rs 6 lakh per year for SBI car loan-ET 3rd of September 2013
CHENNAI/MUMBAI: The State Bank of India(SBI) has tightened the eligibility criteria for its car loans and will now extend finance to only those earning over Rs 6 lakh per annum. The bank has cited inflation as the reason behind the move, but, sources say, that the bank is being cautious given the slowdown in the economy.
"Given the cost of petrol, maintenance, insurance and other costs, we feel that family income of Rs 50,000 is required for someone planning to buy a car," said a bank official. The bank has also started charging a processing fee of 0.51% of the vehicle's cost.
Bankers say tightening eligibility norms is a standard operating procedure during a slowdown in the economy. "In good times, banks factor in some increase in salary for young people. But during a slowdown when jobs are not growing, salary hikes are also not certain," he said.
Sources said that the bank had discouraged branches from extending vehicle loans above Rs 1 crore after some defaults in loans advanced for purchase of high-end cars. Officials in Mumbai, however, denied that tighter eligibility criteria were triggered by defaults. Although the loan limit is up to four times an individual's annual income, subject to a maximum of Rs 6 lakh, the bank is extremely judicious in the loan amount. The maximum amount of finance is 85% of the value of the vehicle.
SBI's car loans are the cheapest in the country and are currently available at 10.45%. However, unlike other lenders, SBI loans are floating and benchmarked to its base rate. Consequently, there are no pre-payment charges for the bank's auto loans. The bank's car loan portfolio has soared 39% to Rs 26,411 crore as of end-June 2013, up from Rs 19,040 crore as of June 2012. The auto loan portfolio of the bank accounts for nearly 3% of its advances. In terms of retail, auto loans are the second largest component of their portfolio after home loans.
Even with the higher income threshold, over 10% of the country's population would be covered — still a sizeable market for SBI. Officials denied that this will dent the market for low-end cars. "There are many people who go for cheaper small cars as a second car."
इसलिए मूल समस्या मनमोहन सरकार की ऋण लेकर घी पीने की नीति की है. सरकार की नीति कोलकाता कीशारदा चिट फंड से भिन्न नहीं है. शारदा के मालिक नये धारकों से रकम जमा कराते रहे और पुराने की रकमअदा करते रहे. कंपनी घाटे में चल रही थी, परंतु यह तब तक नहीं दिखा, जब तक नयी रकम आती रही. इसीप्रकार जब तक विदेशी निवेश आता रहा, तब तक घाटे में चल रही भारत सरकार जश्न मनाती रही. अब गुब्बाराफूट चुका है और रुपया लुढ़क रहा है.
मेरा अनुमान है कि रुपया 70 रुपये प्रति डॉलर के नजदीक स्थिर हो जायेगा. लेकिन इससे अल्पकालिक राहतमिलेगी. देश की अर्थव्यवस्था को सुदृढ़ करने के लिए सरकार को खपत कम और निवेश अधिक करने होंगे.विदेशी निवेश से प्राप्त रकम का सदुपयोग हाइवे तथा इंटरनेट सुविधाओं के लिए किया जायेगा, तभी सही मायने मेंरुपया स्थिर होगा.
http://dkjain4970927092007.blogspot.in/2013/09/bad-management-and-bad-polices-causing.html
CHENNAI/MUMBAI: The State Bank of India(SBI) has tightened the eligibility criteria for its car loans and will now extend finance to only those earning over Rs 6 lakh per annum. The bank has cited inflation as the reason behind the move, but, sources say, that the bank is being cautious given the slowdown in the economy.
"Given the cost of petrol, maintenance, insurance and other costs, we feel that family income of Rs 50,000 is required for someone planning to buy a car," said a bank official. The bank has also started charging a processing fee of 0.51% of the vehicle's cost.
Bankers say tightening eligibility norms is a standard operating procedure during a slowdown in the economy. "In good times, banks factor in some increase in salary for young people. But during a slowdown when jobs are not growing, salary hikes are also not certain," he said.
Sources said that the bank had discouraged branches from extending vehicle loans above Rs 1 crore after some defaults in loans advanced for purchase of high-end cars. Officials in Mumbai, however, denied that tighter eligibility criteria were triggered by defaults. Although the loan limit is up to four times an individual's annual income, subject to a maximum of Rs 6 lakh, the bank is extremely judicious in the loan amount. The maximum amount of finance is 85% of the value of the vehicle.
SBI's car loans are the cheapest in the country and are currently available at 10.45%. However, unlike other lenders, SBI loans are floating and benchmarked to its base rate. Consequently, there are no pre-payment charges for the bank's auto loans. The bank's car loan portfolio has soared 39% to Rs 26,411 crore as of end-June 2013, up from Rs 19,040 crore as of June 2012. The auto loan portfolio of the bank accounts for nearly 3% of its advances. In terms of retail, auto loans are the second largest component of their portfolio after home loans.
Even with the higher income threshold, over 10% of the country's population would be covered — still a sizeable market for SBI. Officials denied that this will dent the market for low-end cars. "There are many people who go for cheaper small cars as a second car."
"Given the cost of petrol, maintenance, insurance and other costs, we feel that family income of Rs 50,000 is required for someone planning to buy a car," said a bank official. The bank has also started charging a processing fee of 0.51% of the vehicle's cost.
Bankers say tightening eligibility norms is a standard operating procedure during a slowdown in the economy. "In good times, banks factor in some increase in salary for young people. But during a slowdown when jobs are not growing, salary hikes are also not certain," he said.
Sources said that the bank had discouraged branches from extending vehicle loans above Rs 1 crore after some defaults in loans advanced for purchase of high-end cars. Officials in Mumbai, however, denied that tighter eligibility criteria were triggered by defaults. Although the loan limit is up to four times an individual's annual income, subject to a maximum of Rs 6 lakh, the bank is extremely judicious in the loan amount. The maximum amount of finance is 85% of the value of the vehicle.
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SBI's car loans are the cheapest in the country and are currently available at 10.45%. However, unlike other lenders, SBI loans are floating and benchmarked to its base rate. Consequently, there are no pre-payment charges for the bank's auto loans. The bank's car loan portfolio has soared 39% to Rs 26,411 crore as of end-June 2013, up from Rs 19,040 crore as of June 2012. The auto loan portfolio of the bank accounts for nearly 3% of its advances. In terms of retail, auto loans are the second largest component of their portfolio after home loans.
इसलिए मूल समस्या मनमोहन सरकार की ऋण लेकर घी पीने की नीति की है. सरकार की नीति कोलकाता कीशारदा चिट फंड से भिन्न नहीं है. शारदा के मालिक नये धारकों से रकम जमा कराते रहे और पुराने की रकमअदा करते रहे. कंपनी घाटे में चल रही थी, परंतु यह तब तक नहीं दिखा, जब तक नयी रकम आती रही. इसीप्रकार जब तक विदेशी निवेश आता रहा, तब तक घाटे में चल रही भारत सरकार जश्न मनाती रही. अब गुब्बाराफूट चुका है और रुपया लुढ़क रहा है.
मेरा अनुमान है कि रुपया 70 रुपये प्रति डॉलर के नजदीक स्थिर हो जायेगा. लेकिन इससे अल्पकालिक राहतमिलेगी. देश की अर्थव्यवस्था को सुदृढ़ करने के लिए सरकार को खपत कम और निवेश अधिक करने होंगे.विदेशी निवेश से प्राप्त रकम का सदुपयोग हाइवे तथा इंटरनेट सुविधाओं के लिए किया जायेगा, तभी सही मायने मेंरुपया स्थिर होगा.
http://dkjain4970927092007.blogspot.in/2013/09/bad-management-and-bad-polices-causing.html
मेरा अनुमान है कि रुपया 70 रुपये प्रति डॉलर के नजदीक स्थिर हो जायेगा. लेकिन इससे अल्पकालिक राहतमिलेगी. देश की अर्थव्यवस्था को सुदृढ़ करने के लिए सरकार को खपत कम और निवेश अधिक करने होंगे.विदेशी निवेश से प्राप्त रकम का सदुपयोग हाइवे तथा इंटरनेट सुविधाओं के लिए किया जायेगा, तभी सही मायने मेंरुपया स्थिर होगा.
http://dkjain4970927092007.blogspot.in/2013/09/bad-management-and-bad-polices-causing.html
Unless section 34 (d) of Banking Regulation Act is amended the Bad Loans provisioning & Real health of Banking industry will not be known. This regulation is mother of all frauds in financial instituitions.
ReplyDeleteThe Banking Regulation ACT, specifically section 34A.(non disclosure of information)
34A. 1[ Protection of documents of confidential nature.-
(1) Notwithstanding anything contained in section 11 of the Industrial Disputes Act, 1947 (14 of 1947 ), or any other law for the time being in force, no banking company shall, in any proceeding under the said Act or in any appeal or other proceeding arising therefrom or connected therewith, be compelled by any authority before which such proceeding is pending to produce, or give inspection of, any of its books of account or other document or furnish or disclose any statement or information, when the banking company claims that such document, statement or information is of a confidential nature and that the production or inspection of such document or the furnishing or disclosure of such statement or information would involve disclosure of information relating to--
(a) any reserves not shown as such in its published balance- sheet; or
(b) any particulars not shown therein in respect of provisions made for bad and doubtful debts and other usual or necessary provisions.
(2) If, in any such proceeding in relation to any banking company other than the Reserve Bank of India, any question arises as to whether any amount out of the reserves or provisions referred to in sub- section (1) should be taken into account by the authority before which such proceeding is pending, the authority may, if it so thinks fit, refer the question to the Reserve Bank and the Reserve Bank shall, after taking into account principles of sound banking and all relevant circumstances concerning the banking company, furnish to the authority a certificate stating that the authority shall not take into account any amount as such reserves and provisions of the banking company or may take them into account only to the extent of the amount specified by it in the certificate, and the certificate of the Reserve Bank on such question shall be final and shall not be called in question in any such proceeding. 2[ For the purposes of this section" banking company" includes the Reserve Bank, the Development Bank, the Exim Bank, 3[ , the Reconstructing Bank, 4[ the National Housing Bank]], the National Bank 5[ , the Small Industries Bank], the State Bank of India, a corresponding new bank, a regional rural bank and a subsidiary bank.]
THIS PROVISION HAS TO BE REMOVED TO AVOID LARGE BORROWAL NPA’S IN BANKING INDUSTRY. NOT ONLY THIS OTHER ANICLLARY PROVISIONS ATTACHED TO THIS HAS ALSO TO BE REMOVED FROM THE ACT.