Personal finance Tuesday
Moneylife Digital Team 10 August 2010

UTI MF revises exit load under UTI Bond Fund   
UTI Mutual Fund has revised the exit load structure under its scheme UTI Bond Fund. As per the revision, scheme will charge an exit load of 1% if the investments are redeemed within 180 days from the date of allotment and 0.75% if redeemed after 180 days but before 365 days from the date of allotment. The revision is effective from 09 August 2010. UTI Bond Fund is an open ended debt fund.

Central Bank of India introduces SMS facility in various Indian languages

Central Bank of India has launched SMS facility for its customers in various Indian languages. The language preferences available to the customers are Hindi, Marathi, Telugu, Bengali, Gujarati and Tamil which will be later extended to 15 languages. The customers will get a regional language SMS, based on their choice, whenever their account is credited/debited.

Oriental Bank raises lending, deposit rates

Oriental Bank of Commerce announced an increase of 50 basis points (bps) in its benchmark lending rate and up to 100 bps hike in fixed deposit rates. The benchmark prime lending rate (PLR) has been increased to 12.5% from 12% with effect from 6 August. This would make the floating rate for existing home and auto loans costlier. The bank has also increased the term deposit rates by 25-100 bps from August 5. Fixed deposit rate for 1,000 days would now attract an interest rate of 7.5%, against 6.75%. For 7-14 days maturity slab, the bank has effected a 100 bps increase to 2.5%, but in this case deposits should be over Rs1 crore. Term deposit rate with maturity between 91 and 179 days has been raised by 50 bps to 5.5%. For fixed deposits between 180 and 269 days, the new rate is 6%, up by 50 bps, while for 270 days to one year, it has been revised upward by 25 bps to 6.25%. The increase in three-five years tenor category is 25 bps at 7.25%.

Pass on 1% rate subsidy on home loans

The Reserve Bank of India (RBI) has asked banks to put in place a suitable mechanism to provide the benefit of the 1% interest subsidy granted by the government on home loans to buy a house of up to Rs20 lakh. RBI further said that after sanctioning and disbursing eligible loans under the scheme, banks will claim disbursement of subsidy from the RBI on a monthly basis. To encourage the housing sector, finance minister Pranab Mukherjee in his Budget for 2009-10, had announced a scheme under which the government would provide interest subvention of 1% on housing loans of up to Rs10 lakh for one year, provided the cost of the unit was less than Rs20 lakh. The scheme, which was initially for a period of one year up to 30 September 2010, is extended till 31 March 2011.

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