Thursday, August 18, 2011

Teaser Loan Back with a Bang (Bank!)

After SBI was forced to close its teaser loan scheme, teaser loans are back with ICICI Bank. 
It'd be interesting to know the response from SBI, being the pioneer of teaser loans. 
Look for HDFC as well, because generally HDFC and ICICI Bank go along similar lines.

The floating rate from the second year will be linked to the base rate plus margin decided at the time of sanction of the loan. 
There is always a catch associated with it.  
Why can't these banks disclose the spread in advance?  

Wednesday, August 3, 2011

Back-dated effect: HDFC RPLR

In continuation with my previous post:
1st August 2011:  HDFC increased its RPLR by 0.5%
2nd August (morning): Still they kept telling people that they were going to do it this week
2nd August (evening):  They finally announced that they have really done it, with effect from 1st August i.e. back dated
3rd August: All newspapers published it.

I wonder how can a company increase its PLR with back-dated effect. Can anyone explain?

Tuesday, August 2, 2011

HDFC's RPLR: Ambiguity prevails!

What a joke!
HDFC has already increased their RPLR by 0.5 and it now stands tall at 16.5 as of 1st Aug 2011.

But HDFC's vice chairman still (as per the news dated 2nd Aug 2011) says that they are yet to decide about passing the rate hike to customers.

Here is a screenshot (not my account) of an HDFC customer as a proof. Look at the Next Reset Date and the Expected ROI. If you look at all the dates in the screenshot, you'll come to know that the ROI has has ALWAYS (reset cycle is of 3 months) increased since 1st June 2010.

Interest Rate / EMI is subject to any change that may happen in future
Next Reset DateExpected ROI (%) on Next Reset
Those who had the reset date as 01-AUG-2011 have already been affected with the increase in RPLR (correct me if i am wrong). 

I just had a word (I have also recorded the conversation) with HDFC branch (Pune main) and they said that even though it's been updated into customers' online accounts, HDFC has not yet decided on the discount (did they mean spread? god knows) and the exact change would be clear only after wednesday (i.e. 3rd Aug)

What could be the reason for HDFC to discretely increase the RPLR? 
One possibility: They have not yet decided about the new ROI for the new customers, but anyways wanted to "pass on" the RBI's hike to existing customers, as they didn't want to "miss" the deadline of 1st August. (with 3-month reset cycle, 1/4th 1/3rd of the customers should have the reset date as 1st Aug.)