Bad times for the Loans Market

Banks are wary to lend now. Many banks stopped giving loans. They are accepting loan applications and not processing them. Except one or two banks the loan market has almost come to stand still. I found only HDFC bank is aggressively going ahead in the market. So looking for loans better get in touch with HDFC executives/ DSAs.

Surrogate Loans

Banks normally offer loans to customers against income proof. That is a normal process. Banks also give loans to customers on Other Loan tracks Like Home Loan track, Mortagage Loan, Car Loans, Other Personal Loans and Business Loans. They also have facility of balance transer against credit cards. If customer is having a credit card which is over a specified period normally more than 10 months banks give 2 to 3 times loan on the total limit of the card. They are also giving loans aginst SIP Systematic Investment Plans in Mutual funds aginst Life Insurance Polieces whicha re more than 2 years old. Customer should check where he will fit and and under which program he can get maximum loan, better to go to that program

Negative Profiles

Banks normally will have negative profiles, whom they are not interested in lending. They still can avail loans if they have good track record with banks.

Interest Rates

Loan rates are increased, even now one can negotiate for good interest rates. banks will be looking for good customers, always have good tracks and they will help you to get loans easily.

Types of Loans

Banks provide loans for Salaried and Self Employed. In many cases they prefer customers whose salaries are credited in the bank directly, if salaries are paid by cash or cheque most private sector banks donot entertain. They also give loans of previous track record of loans taken from other banks, average balance maintained in bank savings account, Insurance premium paid, Credit cards.