Advertisement

HindustanTimes Fri,22 Aug 2014

Festive cheer: EMIs on cars, two-wheeler and consumer goods loans will fall soon

HT Correspondent , Hindustan Times  New Delhi, October 03, 2013
First Published: 21:38 IST(3/10/2013) | Last Updated: 22:18 IST(3/10/2013)

EMIs on car, two-wheeler and consumer goods loans will fall soon. Public sector banks will provide cheaper loans on these items ahead of the festive season in order to generate demand and kick start the sputtering economy.

Advertisement

Following a meeting between finance minister P Chidambaram, Reserve Bank of India governor Raghuram Rajan and department of economic affairs secretary Arvind Mayaram in Delhi on Thursday, the government announced that it would provide additional capital to state-owned banks to enable them to provide such cheaper loans.

Chidambaram had, in his budget, announced that Rs. 14,000 crore would be provided to recapitalise banks. “This amount will be enhanced sufficiently,” a finance ministry statement said.

”We are awaiting details but this move will increase consumer demand,” M Narendra, chairman and managing director, Indian Overseas Bank, told HT.

In July, consumer durables output had dropped 9.3%, against a growth of 0.8% in the corresponding month in the previous year. The segment registered a 12% decline in output in the April-July period against a growth of 6.1% in the previous corresponding period.


Advertisement
more from Business

Sensex up 111 points in early trade; Nifty touches new peak

The benchmark BSE Sensex rose over 111 points and the NSE Nifty soared to a new life-time high of 7,924.90 in early trade on Friday as IT, oil and gas, power and consumer durable stocks led the rally on sustained capital inflows.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved