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Posted On: 6 October 2009 01:14 pm
Updated On: 12 November 2020 02:10 pm

Banks may relax lending norms

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Banks here are bound to relax personal and other lending norms to let the economy move, say banking industry sources. “They have to liberalise lending rules if the economy has to move,” said a source, citing the state’s decision to buy a further five percent capital of local banks as a move that would enhance their risk-taking ability. “If you want consumer spending to pick up to previous levels and prevent a Europe-like situation, you have to begin relaxing the restrictions imposed on all kinds of lending, including car loans,” said the source. Many local car dealers are suffering because there are vehicle loans that remain un-serviced, then, the banks are not easily giving fresh loans to buy new cars. But the situation cannot be expected to continue for long, said the source.