Everyone is looking for earnings, Banks depend on us in the form of interests and processing fees.
By
Biswajit Sarma, Project Manager - Construction of Raddison 5 Star Hotel, DS Group
| 09 30 2011 07:03:28 +0000
Pricing for loans should be a function of cost of funds, operating costs, credit costs (incl. credit losses/provisions) and profit margin. I feel the operating cost as a percentage of credit extended is pretty high for small ticket loans, be it microfinance, personal loans or agricultural loans. In a free market economy, intermediaries (banks/NBFCs/MFIs) should be free to charge interest rates as per prevailing market conditions. There is no point in mandating that banks should charge at X% or MFIs can charge a maximum of Y%. Allow banks to freely compete with MFIs in the field of microfinance & agricultural lending and have suitable entry barriers to encourage consolidation among MFIs. RBI should mandate a UNIFORM fair pratices code which all market participants (irrespective of size and background) should honour.
By
Ayan Kumar Das, Solution Manager, Misys International Financial Systems
| 02 14 2011 09:22:44 +0000
In a way it is not proper. Jyoti is right in this way. But with the bad and sad experience of Micro Finance companies, banks charging a little extra seems to be reasonable.
By
Suryanarayan Murthy, Free lancer
| 02 07 2011 04:21:04 +0000
It is again the "capitalist" interpretation of finance... In the time where the major financial companies are thinking the capitalist way of giving importance to economies of scale, at least the government should favor msme borrowers. The government should at least, in a growing economy like India, think about social upliftment.
By
Gayathri Subramaniam, Manager - Credit Management, Corporate Banking, AXIS Bank
| 12 07 2010 15:03:15 +0000
Yes ... there should be equality in Banks and MFinances. Rightly said that no body raises objection is case of MFs charging high interest. Banks suffer from cost point of view in Small loans. Main point is : credit in case of need and timely credit. And here comes MFs ... they provide credit timely - people dont bother for high interest rate. Banks may do these equally.. but are their staff and mentality ready for small loans .. may they also focus on wo/Men of small means ? Let us observe.
By
ASOKE KUSARI, Domestic Private Banking-Executive/Manager, A large leading PSU Bank - India
| 10 31 2009 10:43:30 +0000
I also agree this should be done. Though its not so easy. So, before charging money from the poor government should measure its every step and alternatives....
By
Veena Gupta, Analyst, Blackstone Group
| 10 31 2009 08:29:27 +0000
|
i agree with u shanti
By
puneet , Manager Admin
| 09 30 2011 12:02:44 +0000
it is not the right proposal, we need to protect MSME's they are the contributors for our economy, developing country like India MSME are required. so this proposal will not really suits.
By
ricky P, SMM exeutive,
| 09 30 2011 06:02:11 +0000
charge is not important, important is principal return with interest. Hope it is the people money businessed by institutions , not donations .
By
Prasad Kanhere, Technology developemnt, Sivaa Tech
| 09 28 2011 12:15:30 +0000
This suggestion is incorrect. In actual it should be the other way round. Bank should encourage more and more people to come to bank and increase of the size of lending thus increase business. This suggestion will only create negative impact. Due to high charges small loan seekers will avoid banks and start going to other money lenders who will in turn exploit such loan seekers. Thus creating a social problem.
By
Shashi Kumar U, Manager accounts & commercial, Mazda Concrete Products Pvt Ltd
| 09 28 2011 04:18:44 +0000
Shanti is absolutely right. This is not the time to tighten the screw on money flow into the economy. On the contrary the government should try to build buoyancy in the small investors. The big timers will definitely arrange for themselves as it is ideal time to invest and they have big pockets. The Government will face a major problem once the down-slide is over as the present suggestion by NABARD will further accumulate investment in the the top elechons of society. This will only make it further unwieldy for the society and harmful for the economy.
By
Shameena W., Admin Manager, Wizcraft Inc.
| 09 27 2011 10:55:34 +0000
No! It is a silly proposal. The move will only discourage small investors. At times of a looming depression, the last thing we need is more people moving away from investing and trying to get employed.
By
Shanti Roshan, Accounts Manager, Aditya Birla Group
| 09 27 2011 10:38:32 +0000
farmers and small traders in villages should get loans at the lowest possible interest rate. every one probably agrees. now whether the rate should be below cost of funds . no need . it can be at cost. (then cost of funds include cost of operation which is controllabe and should be controlled.) should the interest rate be dictated by others including nabard. no. banks should be free to decide. interest rate should be the lowest for small credit also becoz the non performing asset is lowest in this category . ( it is a fact. look at the figures a little closer.) govt move to control interst rates of m f i is welcome. if not what is the difference between blade companies and m f i except the sophistication in the name . last but not the least. when islamic banking is in a position to offer loans at zero interest , what is the fun in arguing that interest rate is the villain holding the banks back from expanding small credit
By
m k mathai, senior manager, canara bank , broadway ekm
| 09 27 2011 02:06:23 +0000
Allow bank to reduce charges for small loans and increase the valum of such loans, because there is a large section of small barrowers which the bank are not catering because such barrowers find bank charges and procedures difficult to meet.
By
Shashi Kumar U, Manager accounts & commercial, Mazda Concrete Products Pvt Ltd
| 02 11 2011 04:08:00 +0000
I don't think so....this will directly and badly affect small lenders....which will detoriate their confidence in banks and hence will take us to a very dangerous situation.
By
Saurabh , Financial Analyst, Canara Bank
| 02 10 2011 06:20:38 +0000
They are sick .......................... & their thinking is also sick & lack of new ideas.
By
SHRIKANT MANOHAR DANKE, Project Manager, Phadnis Infrastructur Ltd
| 12 07 2010 13:53:09 +0000
The concept of financial inclusion is a noble one. There may be many challenges on this route. For the poor and the rural folk, charging more only implies that they are penalised just beacuse they are living in remote areas. Usually these people take the loans for their survival unlike many urban people who avail the loans for accumulating wealth. Government should not even think on the lines of charging more for the poor. Instead, Government should do away with practices like loan waivers, and help the Bank in some alternative ways for servicing the poor.
By
SHARATH CHANDAR REDDY, Business Development Manager - Insurance, I T C Ltd
| 10 31 2009 17:28:51 +0000
How can we charge money from poor people merely because of their locations and from where will they pay ? They cannot properly fill their belly. They take loans to buy food not like us to buy materials. Because of all these problems, these people rebel and maoism occurs. Government shouldn't at all charge more from them. Rather should make them self dependable by encouraging their rural industry and make them financially independent and self dependable...
By
Swati Raut, Product Manager, Aviva
| 10 31 2009 08:28:26 +0000
|
