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Old 24th November 2008, 16:10   #1
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Default Need a loan? Sorry No loans now a days!

Me: Hello! I need to apply for a personal loan.

They: Looking at the current market, we have stopped giving personal loans.

Me: But I have the paying capacity.

They: We don't have the issuing capacity.

Guys, where are we heading to? Literally all the banks I spoke to, have stopped issuing loans. HSBC, Citi, ICICI, Kotak,HDFC, Union Bank, Bank of Baroda, GE Money, Can Bank, Reliance Capital, Barclays, Axis Bank.

How does a needy person fulfill his loan requirements?
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Old 24th November 2008, 16:14   #2
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You are right, bottom line no loans. Forget personal loans, even home loans and car loans are hard to come by today. And to take the cake big corporates, with hig credit ratings are also stuck as thier working capital overdrafts have been blocked by most banks. If this contunies you can kiss even 6% GDP growth goodbye.
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Old 24th November 2008, 16:19   #3
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Quote:
Originally Posted by amtak View Post

Guys, where are we heading to? Literally all the banks I spoke to, have stopped issuing loans. HSBC, Citi, ICICI, Kotak,HDFC, Union Bank, Bank of Baroda, GE Money, Can Bank, Reliance Capital, Barclays, Axis Bank.

How does a needy person fulfill his loan requirements?
I received about 3-4 calls from different banks asking for a Personal Loan last week. Sad to hear that needy are not attended to!
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Old 24th November 2008, 16:22   #4
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I got a call quite recently about a personal loan being available against my car, which is hypothecated to Kotak. Amtak, you could try such an angle, if thats available for you.
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Old 24th November 2008, 16:31   #5
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Me too getting lot of calls on persoanl loans....needy not answered. may be if i really need a loan, no one give me loan.
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Old 24th November 2008, 16:44   #6
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The calls are from the DSA (Direct Selling Agents?), but once you show some interest and give them the papers to process, that is when the banks show their true colour.

I have had this happening to many of my colleagues who otherwise have excellent track record, have all their papers in order. I have heard so many funny reasons for not providing loans lately, it is not a joke.
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Old 24th November 2008, 16:47   #7
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These banks only have got the markets/business to this ground level by giving out good loan amount to foolish people,and the actual genuine needy person has to go thru alot to get it,i have seen some of the loan approval managers going and partying hard with their clients to get their loan's approved either for business or housing.
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Old 24th November 2008, 16:56   #8
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Till 2 weeks back, I was getting about 3-5 calls a days for personal loans. since last week everyone has disappeared. Now that I need it, no one is willing. When I wasn't looking for quick cash, everyone offered!!!

Thinking of purchasing on my Credit card and converting that on EMIs. That's the last resort now.

@Ben: Car is on my brother's name. So that option is ruled out.

Last edited by amtak : 24th November 2008 at 16:59.
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Old 24th November 2008, 16:59   #9
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Another reason is arm-twisting by Govt.

Now a days:

Rate of home loan : 9.25 - 9.75% (Bank of Baroda - India's International Bank - Interest Rates)
Rate of FD : 10% - 11% (Fixed Deposits Interest Rates | HDFC Bank - Fixed Deposits Rates India, Security Deposits India)

Who would not get a loan and put that in FD ????

Its a clear arbitrage opp. And on top of it, there is rebate on interest portion of home loan.

These rates force private banks to price-match to some extent. And with ongoing crisis (ICICI borrowed money at 20%, Reliance is in market with even higher rates). Which bank would be willing to offer loans without collateral or 700+ CIBIL score?

Quote:
Originally Posted by amtak View Post
Thinking of purchasing on my Credit card and converting that on EMIs. That's the last resort now.
Check your CIBIL score, if its in mid, talk to some CA. Getting a loan against PF / LIC etc might be much cheaper then EMI from card.

That is if amount is larger then 1 lakh. Otherwise, headache involved in follow-ups for these loans is not justified.

Last edited by NetfreakBombay : 24th November 2008 at 17:02.
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Old 24th November 2008, 17:11   #10
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I think we have come full circle now, just like in our parent times, you save save save, buy TV/ fridge, save save save, buy Car, save save save buy Home.

No loans, No easy money, even if you have the capacity to pay the EMI's.
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Old 24th November 2008, 17:16   #11
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How does one check his CIBIL score?
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Old 24th November 2008, 17:17   #12
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So are people not going to get an eductaion loan also? Even if there is a proper collateral?
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Old 24th November 2008, 17:25   #13
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Quote:
Originally Posted by xbox360 View Post
How does one check his CIBIL score?
Talk to someone in bank that has your Credit card + Salary Account.

With every pull bank gets a reference number. You need that number.

Then need to contact CIBIL with this reference number and pay nominal fees (less then 500). to get your score + report (it will have details of all late payments/litigation/write offs/settlement/EMI in last 7 years).

Quote:
Originally Posted by maddy42 View Post
So are people not going to get an eductaion loan also? Even if there is a proper collateral?
With a collateral, edu loan should not be an issue. However banks might demand higher margin in this market. CIBIL scores of parents would play a role here.

Last edited by NetfreakBombay : 24th November 2008 at 17:27.
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Old 24th November 2008, 17:29   #14
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Quote:
Originally Posted by NetfreakBombay View Post
Talk to someone in bank that has your Credit card + Salary Account.

With every pull bank gets a reference number. You need that number.
But would the bank employee be ready to give that information?
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Old 24th November 2008, 17:29   #15
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Loans are hard to come by. Recently I had a tough time getting a home loan. It took 2.5 months to get a sanction. I believe auto loans are being quoted at 19% p.a interest.
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