Job opportunities for retired bank officials

Retired bank officials that are still willing to work finally have something to cheer for. Kerala based Manappuram Finance has invited application form the retired bankers for a specific area of expertise. The total head count of the group is around 23,000 and out of them close to 1,300 are the retired bank officials.

The Executive Chairman of the group, Mr. V.P. Nandakumar said “We are planning to hire 5,000 people in the next three months. At least 1,000 of the new entrants will be retired bank officials. This is essentially to increase the proportion of experienced hands at the level of branch heads and area managers.”

Indian lenders not ready for saving rate deregulation

The lenders in India have expressed their dissatisfied over the proposal of the Reserve Bank of India about the de-regulation of the saving account deposit rates.

The Chief Executive Officer of the Indian Banks’ Association, Mr. K.Ramakrishnan said “Given the conditions in which we are today, the bankers felt it will not be appropriate for actually not going in for deregulation at this point of time.”

Recently the reserve Bank of India had imposed several amendments about the calculation of the interest rates on the saving accounts on the banks and then it mandated the lender to increase the interest rate applicable on the saving account deposits to 4%.

A banker with private sector lender said “Established banks will be against it and new banks be in favour because if I have rate as a tool to compete in the market, it makes it that bit easier.”

“Right now, the liquidity is really tight and in this kind of an environment you can’t deregulate a product which can potentially throw nasty surprises to bankers on how to manage their deposit base,” said an analyst with brokerage firm.

Indian Post to implement Core Banking at its branches

Indian Post, one of the most trusted names in the country is working very aggressively toward the Financial Inclusion Plan and has announced to roll out the Core Banking facility at around 150 branches with in next two months.

Indian Post has an extensive network that also covers the rural and remote areas of the country. The Post Master General (Karnataka Circle), Vaumitra said that around 4000 branches would be included under the Core Banking Facility very soon.

"The operations would be carried out in a phase by phase manner and in the first phase nearly 1,000 Departmental Post offices would have core banking," he said. The first phase of the project will start by implementing CBS at 150 branches in Karnataka.

He also said that due to the presence of India Post even in the far-flung areas in the country a lot of banks are willing to partner with them.

All about CIBIL Credit Information Report (CIR)

Credit report forms an integral part of home loan procedure as lenders are a lot dependent on the credit score of a borrower to evaluate the credit worthiness of a borrower. If the score of an applicant is impressive then he can get a good home loan deal but if it is not that good then things can get a little rough for him.

As a credit report can have a great impact on the finalization of the home loan, so it becomes necessary for a person to be aware about certain facts related to credit report. CIBIL is one of the agencies that provide credit reports and lenders take it as a very reliable report provider.

The first thing that people must know is that CIBIL does not prepare the report itself but it is based on the information that lenders and various financial institutions provide about a person. It is a common scenario that sometimes even if a person has repaid the entire borrowed amount still then he is categorized as a defaulter in the report, it is because the related lenders has not made aware CIBIL about the developments.

A borrower need not to panic in situations like these, the matter can be sorted out very easily, that person jus have to visit the lender and ask him to forward the details to CIBIL, CIBIL will update the credit report the person as soon as it receive updates. To avoid such a condition a person must keep checking his credit report at regular intervals.

A person can get access to his Credit Information Report (CIR) by filling a application form available at CIBIL website, the applicant also need to pay a nominal fees of Rs. 142 to get his CIBIL report. One more very important thing is that CIBIL does not decide whether one should be allocated loan or not, it just makes available the credit history of that person rest is on the lender.

Financial planning very necessary in present time frame

People that are planning to borrow a home loan might be in dilemma to go pr not to go for the loans due to the continuous hike in the lending rates that has made home loans far more expensive then they used to cost a couple of years earlier.

The lending rates have gone up by 200 basis points in the last two years and the rates and the rates are further expected to up in the future. It can be very difficult for a borrower to decide make a decision of borrowing loan at this instant of time.

A person can not do much about the soaring rate but he must do whatever he can do to counter balance the effect of the inflated loan rates. It is very necessary for a borrower to evaluate himself the time he plans of borrowing home loan.

A loan is meant to get benefits out of it in the broader frame of time but if the loan has potential to cause loss or if the loan leaves a person bankrupt then there is no use of borrowing, hence he must avoid, borrowing the loan.

The best thing at this point of time is to wait, and if a person really needs to borrow a loan then he must ensure that he is financially sound enough to handle the loan. Hence financial planning holds prime importance here.

Even for the people that have put their borrowing plans on hold must start planning; they must try to repay their current borrowings as soon as possible and keeping their future requirements in mind they must start saving the finds that cab later be utilized while borrowing other loan as there is certainty that the loan rate will fall and even if they fall any one is not really in a position to predict the time.

To make the most of the time that he gained by delaying his borrowing schedule he can make use of the fixed deposits and the recurring deposit schemes, that can help him to earn some interest on the finds that his saving that can come quite handy at the time of borrowing even if the loan rates do not fall even then.

Applying for bankruptcy, are you sure?

If a person is unable to pay his debts that borrower owes then the person is declared as bankrupt. Some people often considers it as an option that leads to home loan modification; but before a borrower is declared as bankrupt the lenders investigates all the borrowings of a person and if they are very much then the lender might reject the idea of modification of home loans.

In most of the cases where a borrower has applied for bankruptcy has ended with foreclosure of their loans, there are very less chances that the lender agrees for the home loan modification. So, a borrower must calculate the risk involved before he applies for bankruptcy with the bank.

The decision of bankruptcy will also have significant affect on the credit score of the borrower as bankruptcy is reflected in the credit record of a person for up to 10 years and hence can also affect the future borrowing plans.

Why one needs to worry about his credit score?

When a customer approaches a lender with loan application, the lender asks for several documents that accounts for the total inflow and out flow of the funds and that is how the lender puts an estimation of the loan eligibility of a borrower but there is another very crucial document that the lender considers and on which the fate of loan application largely depends.

The document is provided by CIBIL (Credit Information Bureau (India) Ltd.) known as Credit Information Report (CIR), it accounts for all the borrowings of the applicant. The lenders that are member of CIBIL provides the details of the borrowings of the customer and that is how CIBIL prepares a detailed report of the credit history of the borrower and in turn the member lenders can access the Credit Information Report(CIR) of a borrower.

On the basis of CIR, CIBIL also prepares credit score of the borrower; it ranges from 300 to 900 points, where higher credit score establishes the higher credit worthiness of a borrower. Earlier a borrower only has access to CIR but now a customer can get his credit score by paying Rs. 450 as fee.

Credit score is far more than a number as it reflects the credit worthiness of an individual. The lenders evaluates the risk involved in a lending a customer on the basis of his credit score, sometimes a lender can even reject the loan application merely on the basis of his credit score.

On the other hand, if a borrower holds a impressive credit score then a lender can even offer him loan on a lower interest rate or a borrower can ask for some add on facilities. So, credit score is of vital importance for a customer who intends to borrow loan.