Falcon Finance & Realty

Falcon Finance & Realty FALCON FINANCE & REALTY is a finance & realty Consultancy Firm. Serving for the requirements of Home Loan,Mortgage Loans, WC Loans & Project Finance.

The Company is equipped with best in class Professionals, having related expertise of their field in Finance and Real Estate Sector. The Company has it's major focus on Housing Loan, Mortgage Loan, Working Capital Loan and Project Finance. The Company's clients always have the optional Real Estate Investment and Property Search Back-up through its Sister concern M/s Falcon Realty. The Company is Always Committed to its clients with its best and available deals and services at a real time.

20/07/2014

SBI ON WHEELS :

State Bank of India on Saturday has undertaken a campaign "home loan on wheels", with its chairperson Arundhati Bhattacharya flagging off first two vans.

On her first visit to Chennai after taking over as the chairperson, Bhattacharya flagged off the two vans that would display various home loan products by the bank to the public in Chennai and its neighbourhood, a bank statement said.

Besides, instant in-principle approval letters, opening savings bank accounts would be done from it, it said. SBI Deputy MD M G Vaidyan was also present on the occasion.

19/07/2014

IMPACT OF RBI DECISION : HOME LOAN BORROWERS AND REALTORS TO BENEFIT

The Reserve Bank of India (RBI)'s move to bring housing loans of up to Rs 50 lakh under priority sector lending, against loans of up to Rs 25 lakh currently, is expected to provide a boost to home loan borrowers and real estate companies.

So far, those availing of home loans of up to Rs 50 lakh were paying 10-11 per cent interest. Now, with the new norms in place, they might see a fall of 25-50 basis points in rates in the medium term.

This is the second bonanza for home loan borrowers in the past few days. In his Budget 2014-15 speech on Thursday, Finance Minister Arun Jaitley had increased the deduction limit on account of interest on home loans from Rs 1.5 lakh to Rs 2 lakh.

On Tuesday, RBI said priority sector lending covered loans towards affordable housing - loans of up to Rs 50 lakh for houses worth up to Rs 65 lakh in Mumbai, New Delhi, Chennai, Kolkata, Bangalore and Hyderabad, and up to Rs 40 lakh for houses worth up to Rs 50 lakh in other centres.

"This makes things a lot easier and it is an encouragement for the housing sector," Keki Mistry, vice-chairman of HDFC, told CNBC-TV18. He added about 40 per cent of the company's total individual loans would now come under priority sector lending.

Sunil Rohokale, chief executive and managing director of fund manager ASK Investment Holdings, said, "Provisioning norms under priority sector are soft and banks need to set aside less funds for that. Since their cost of capital will come down, they will lend to borrowers in that bracket at lower rates." He added home loan borrowers at the lower end of the bracket would benefit and the move would primarily help buyers in Greater Noida, Hyderabad, Bangalore and Manesar in Haryana, where home prices were Rs 4,000-6,000 per sq ft and apartment sizes were 500-1,000 sq ft.

Niranjan Hiranandani, managing director of Hiranandani Constructions, said, "I think borrowers will get loans at a lower rates and it will ultimately help developers. Banks will get into this segment in a big way, as these loans are part of priority sector loans and home loans are the most secured."

Many believe as the worth of houses has risen, RBI has aligned priority loans in housing to current market values. In 2011, the limit for housing loans under priority sector was raised from Rs 20 lakh to Rs 25 lakh.

"You would not get a home for less than Rs 50 lakh in municipal limits of big cities. So, RBI has done the right thing," Rohokale said.

07/06/2014

RBI KEEPS INTEREST RATES ON HOLD, CUTS SLR BY 50 BPS

From: Business Today

Reserve Bank of India Governor Raghuram Rajan on Tuesday kept key policy rates unchanged but marginally reduced the money commercial banks have to mandatorily hold in liquid assets, indicating it will await signals from the national budget next month before acting.

While the cash reserve ratio was kept unchanged at 4 per cent, statutory liquidity ratio (SLR), which is the quantum of liquid assets banks have to hold against their deposits, has been reduced by 50 basis points to 22.5 per cent.

In the second bi-monthly monetary policy review for this fiscal, and the first after the Narendra Modi government took charge last month, Reserve Bank of India Governor Raghuram Rajan's stance has status quo given the prevailing domestic and overseas conditions.

The current policy rates are: bank rate 9.0 per cent, repurchase rate 8 per cent, reverse repurchase rate 7 per cent and marginal standing facility rate 9.0 per cent.

The central bank, however, cut the liquidity provided under the export credit refinance facility from 50 per cent of eligible export credit outstanding to 32 per cent. This, in effect, reduces the amount of money available to exporters to get credit.

07/06/2014

BANKS TO MOVE AWAY FROM CASH CREDIT PRODUCT

From: Business Standard

The Reserve Bank of India (RBI)'s decision to increasingly move away from the overnight repo facility to a term repo facility has prompted lenders to reconsider their short-term product profiles.

Banks offer a one-day cash credit facility to borrowers; much of the demand is met through the daily liquidity adjustment facility (LAF). Banks borrow from RBI's LAF window at the repo rate, currently eight per cent.

The Urjit Patel committee, set up by RBI to review the monetary policy framework, had said there was a need to move away from the overnight window to a spectrum of windows of various maturities. Following this, the central bank had introduced the seven- and 14-day term repo windows from which banks borrowed at a market-determined rate.

Along with introducing term repo windows, RBI continued with the cap on repo borrowings through the overnight window. Last year, it capped bank's borrowings from the daily LAF facility at one per cent of their net demand and time liabilities (NDTL) to make rupee liquidity scarce and stem a sharp fall in the rupee.

"Globally, there is no cash-credit product. There is a need to have a fixed-tenure product that is more stable. Banks are not supposed to undertake the borrower's cash management responsibility," said C V R Rajendran, chairman and managing director, Andhra Bank.

Bankers said the over-time cash credit product, through which borrowers secured funds for a day, had to be done away with, as the central bank had emphasised the need to move away from the daily window. "Through the cash-credit product, the borrower can draw the entire limit sanctioned. If banks borrow from RBI for seven or 14 days to lend and the borrower returns it in a single day, there will be liquidity issues for the bank," said a senior executive at a large public sector bank.

On Wednesday, State Bank of India Chairperson Arundhati Bhattacharya had said, "This gradual shift from one-day to a term repo window will also impact the product range we have at banks. We have a cash-credit product, through which a company can come and do one-day borrowing. Basically, companies' treasury management also gets devolved onto banks." she said.

"We also need to think whether we can afford to continue to give that kind of a product to companies.where companies will be now asked to take seven-day borrowing. So, for the treasuries of individual institutions, companies or banks, this one-day management will actually be phased out, or is in the way to be phased out," she added.

On Tuesday, RBI had said it would continue to provide liquidity under seven- and 14-day term repos of up to 0.75 per cent of the banking system's NDTL. It had also reduced the liquidity provided under the export credit refinance (ECR) facility from 50 per cent of the eligible export credit outstanding to 32 per cent, with immediate effect. To compensate for the loss under the ECR scheme, it had introduced a special term repo facility of 0.25 per cent of NDTL. The move was aimed at improving monetary policy transmission across the interest rate spectrum, and signalled moving away from sector-specific liquidity.

31/05/2014

REALTY SECTOR PINS HIGH HOPES ON MODI GOVT.

Anita Arjundas (), MD and CEO, Mahindra Lifespace Developers Ltd (), the property development arm of Mahindra Group, says the real estate sector can contribute significantly to the economy if certain fundamental and structural reforms are implemented. While some reforms fall under the purview of state governments, a unifying template and policy guideline from the Centre with incentives for reforms implementation can go a long way in the sector's sustained growth, she says. Arjundas, who is also the Chairperson of the FICCI Real Estate Committee, suggests a number of measures.

Regulatory reforms:
Streamline regulations to reduce time of approvals There is an urgent need to reduce the long approval cycles by bringing in a single-window clearance mechanism for all real estate projects, particularly those relating to affordable housing. Delayed approvals act as a huge impediment to the growth of this sector and significantly add to the cost of development. The appointment of a real estate regulator is welcome but this needs to be backed by transparency and responsibility from relevant government agencies. Improved timelines and reduction in ambiguity in the approval process are critical for growth.

Fiscal reforms:
Enhance export competitiveness; reduce housing ownership cost With manufacturing as a key focus area for job creation, the government needs to revive the development of SEZs to spur exports from India. A practical first step would be to reinstate the original SEZ reforms that could provide an immediate trigger for growth as several SEZs are operating with large unutilised capacities which will be unlocked. In the housing front, the new government must take steps to reduce the cost of home ownership by rationalising the multiple taxes levied on real estate in this country. Presently, we have a situation where the same transaction is treated as an immoveable property, a manufactured product and a service rendered, all of which add to costs that are eventually passed on to consumers.

Financial reforms:
Improve access to capital, attract FDI For a capital-intensive industry, timely and cost-effective access to capital is a significant focus area. Some work has already happened here and taking this forward through the implementation of REITs [Real Estate Investment Trust] and granting infrastructure status to the industry to improve access to and cost of finance can help the industry significantly.

Land reforms:
Revamp the land acquisition process to stress greater accountability and delivery on timelines while ensuring that compensation is fair and equitableWhile urbanisation is a reality, planned urbanisation is an imperative and will require the Land Acquisition Act to be re-visited given that it currently does not support timely urban and industrial development. The land pooling model adopted in Gujarat and upheld by the Supreme Court could form one of the approaches for government-led land acquisition in the future.

Labour pool:
Invest in skill development initiatives at the workmen level and also in specialist areas like urban planningThe National Skill Development Council has identified multiple sectors of focus to enable skill creation and employment. Construction is one of them and large-scale programmes to encourage training in this area will help create a robust ecosystem and better skill levels.

"All these measures will go a significant distance in creating a sustainable ecosystem for faster infrastructure creation and growth of the sector," says Arjundas. "Besides these, large-scale urban infrastructure projects like the DMIC [Delhi Mumbai Industrial Corridor] can go a long way in vitalising the corridors along the way and creating new urban centres."

31/05/2014

RBI ENDS PENALTY FOR DORMANT ACCOUNTS

In an attempt to provide some relief to customers, the Reserve Bank of India has asked banks not to charge any penalty for non-maintenance of minimum balance in dormant accounts. Savings accounts and current accounts are treated as dormant if there are no transactions for over two years.

According to the RBI notification, banks should not take undue advantage of customer difficulty or inattention. Instead of levying penal charges for nonmaintenance of minimum balance in ordinary savings bank accounts, banks should limit services available on such accounts to those available to basic savings bank deposit accounts and restore the services when the balances improve to the minimum required level.

Banks should not levy penal charges for nonmaintenance of minimum balances in any inoperative account. Banks should also limit the liability of customers in electronic banking transactions in cases where banks are not able to prove customer negligence, the RBI said.

At present, the State Bank of India does not charge a penalty on dormant accounts. For operative accounts, HDFC Bank charges Rs 750 per quarter if their customers do not maintain a minimum average quarterly balance of Rs 10,000 in urban centres and Rs 5,000 in semi-urban areas.

Anil Rego, CEO & Founder Right Horizons, says the move is likely to be beneficial for customers with such accounts. "Customers with bank balances below the minimum balance limit today end up with charges being deducted which effectively reduce their account to zero because of the deduction. When accounts are dormant, there is no service provided and hence ideally there should be no charge. While this is negative to the banks, the impact on them should not be too large as this is not a major source of income for them.

22/05/2014

To protect consumer interest, the Reserve Bank of India (RBI) is formulating guidelines to discourage lenders from mis-selling and hold them responsible for the products they offer.

While presenting the annual monetary policy for 2014-15 in April, RBI Governor Raghuram Rajan had indicated the need for a statutory framework for customer protection in the banking and financial sector.

For regulations governing the sale of financial products and services, the central bank plans to shift from the current caveat emptor' (buyer beware) principle to caveat venditor' (seller beware).

"We are going to have the principle of caveat venditor and will formulate the codes for it," RBI Executive Director Deepali Pant Joshi said, while addressing a conference of the Banking Codes and Standards Board of India (BCSBI).

22/05/2014

The next time a government bank rejects your loan and you think of applying with another state-run lender there is a good probability it would be rejected there too.

This is because the finance ministry is planning a joint forum of public sector banks to share such information so that bad loans don't rise.

The government is devising a multi-pronged strategy to tackle the problem of non-performing assets (NPAs) as it will be one of the key priorities of the new government. BJP has said in its manifesto that it would take necessary steps to reduce NPAs in the banking sector.

20/05/2014

ICICI Bank, the country's largest private sector lender, has reduced home loan rates by up to 10 basis points (bps) for loans up to Rs 75 lakh.

Under the new scheme, which will be offered till June 30 for new customers, interest on home loans up to Rs 75 lakh will be charged at 10.15 per cent or 15 bps over the base rate.

For loans above Rs 75 lakh, the bank will continue to charge between 10.5 per cent and 11.25 per cent.

This new rate is applicable only for salaried individuals. For self-employed consumers home loan rate remains the same at 10.25 per cent.

With this new rate, ICICI Bank's home loan rate up to Rs 75 lakh is on a par with that of State Bank of India (SBI). SBI, the country's largest lender, however, charges 10.30 per cent for loans above Rs 75 lakh.For women borrowers, the interest on home loans up to Rs 75 lakh is 10.10 per cent.

The revised rates are only applicable for new customers of ICICI .

03/05/2014

RBI's stand on loan prepayment penalty.

03/05/2014

Banks Wary Of RBI Norms On Prepayment Penalties

The Reserve Bank of India (RBI)'s proposal that banks refrain from levying penalties on customers for prepaying floating rate term loans has put lenders in a fix. They fear if corporate houses adhere to this, it will lead to asset-liability mismatches.
In its annual policy review on April 1, the central bank had proposed a ban on prepayment penalties. "Consumer protection is an integral aspect of financial inclusion. The Reserve Bank of India proposes to frame comprehensive consumer protection regulations based on domestic experience and global best practices. In the interest of their consumers, banks should consider allowing borrowers the possibility of prepaying floating rate term loans without any penalty," RBI had said.
What baffled bankers was nowhere in the policy did RBI mention the step was for retail borrowers; also, it didn't put a cap on prepayment."
There is already a ban on prepayment penalty on floating rate housing loans.

01/02/2014

Non-Maintenance Of Minimum Balance Should Not Be Charged, Says RBI

01 Feb 2014 03:00 AM Mumbai Sat, 01 Feb 2014 00:14:00 +0530
The Reserve Bank of India (RBI) on Friday asked banks to discontinue the practice of levying penalty on non-maintenance of minim balance in ordinary savings bank account, a move that may hit the fee-based income of banks. "Banks may discontinue the practice of levying penalty for non-maintenance of minimum balance in ordinary savings bank accounts and instead consider converting such accounts to Basic Savings Bank Deposit accounts," said RBI in the Annual Report of the Banking Ombudsman Scheme for 2012-2013.
Among the other action points for improving customer protection are: banks and Indian Banks' Association (IBA) will revisit the reasonableness' of the proposed levy of charge for transactions done by customers at banks' own ATMs. This comes at a time when banks, particularly public sector banks, were contemplating an increase in ATM transactions charges. Notably, on Thursday, RBI deputy governor K C Chakrabarty had said at an event in Mumbai that it would be "ridiculous" for a bank to charge its own customers for ATM services.
At present, there is no cap on free transactions at own-bank ATMs, while customers can use other banks' machines up to five times a month without any extra cost.
RBI has also asked IBA to issue instructions at the earliest to banks to discontinue levy of pre-payment penalty on all floating rate loans and ensure that fixed rate loans are truly fixed and are not referenced to any floating rate benchmark. Besides, banks have been asked to revisit the charges levied to ensure reasonableness, fairness and transparency in pricing. According to RBI, IBA will issue detailed operational guidelines to banks in this regard.
RBI said banks and IBA will formulate a policy on zero liability of customers in electronic banking transactions, where the bank is unable to establish customer-level negligence. "The onus of proving customer-level negligence would be on the bank and when such negligence is not established beyond doubt, the benefit of such doubt may be given to the customer.
IBA and banks should strive to put in place policies, systems and processes to secure electronic banking systems, protect customer's interest to bring it on a par' with traditional delivery channels," RBI said.
RBI also asked banks and the IBA to work together to roll out a media campaign to create awareness about products and banks' commitment to Fair Practices Codes. "The Depositor Education and Awareness Fund and banks' own advertisement budget may be used for the purpose," said RBI.

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