In India, the loan scenario is in the grips of financial fever; so it would be quite timely to get a brief reconnaissance of the newest developments in the field of lending.

The apex bank (RBI) has taken up the CRR to 8.25% points in order to counter the the affects of a seriously rising inflation rate pushed by the rising oil prices and other consumer items. During the annual ‘credit policy meet’ the apex bank raised the CRR by 25 basis points in order to absorb the excess liquidity from the market. Also, the RBI has decreased the ‘risk weight’ on home loans up to 30 lacs and more. The step has been taken in the expectations of the banking institutions going on a reciprocating mode by curtailing the home funds’ rates of interest. During the time from April, 2007 to February 2008, the regular upsurge in the home loan rates brought about a fall in housing borrowings.