Lending
 
     

Each bank has its own Loan policy, approved by its Board, based on the guidelines issued by the Reserve Bank of India. Banks are expected to base their lending decisions on a careful and prudent assessment of the financial position and repaying capacity of the applicant, besides other important criteria.

 

    What information is a bank required to give when one approaches them for a loan?
    What is floating rate of interest?
    What would one require to know if one opts for a floating interest rate on loans?
    What is fixed interest rate?
    What would one require to know if one opts for a fixed interest rate on loans?
    What is interest rate reset clause?
    What is MITC?
    Will the bank inform the borrower when there is a change in the interest rate on the loan?
    Can a borrower increase the tenure of a loan when the interest rate increases?
    Can the borrower switch from a loan availed on fixed interest rates to floating interest rates?
    Will a bank acknowledge the receipt of a loan application?
    How long will a bank take to process a loan application?
    How will I know if the bank has sanctioned my loan?
    Will the bank give the borrower copies of the documents / loan agreement he has executed while availing the loan?
    Will the bank acknowledge receipt of documents / securities. / title deeds taken as security for the loan availed?
    How will one know the status of one's loan account?
    Can one prepay the loan availed? Do banks charge for pre-payment of loans?
    What is an EMI?
    Can the bank ask for additional security while sanctioning a loan?
    Does one have to insure the vehicle / property etc. purchased with the loan availed?
    When will the bank return the securities / title deeds deposited as security for the loan availed?
    How long does a bank take to return the securities / title deeds deposited as security for the loan availed?
    What happens if the bank loses the documents etc. lodged as security with them?
    How long will the bank take to transfer a borrowal account to another bank?
    What information is the bank required to give the guarantor of a loan?