For covering the risks, lenders charge interest at higher rate. But, if your credit history is perfect, then getting an unsecured loan at comparatively lower rate is possible in the market, if you make an extensive search for a suitable lender.

During Christmas time, the demand for personal loans shoots up. People use these extensively to cover their shopping and holiday expenses. Home decoration, buying gifts for family and friends and throwing New Year parties consume a big portion of your income. Under such circumstances, it sometimes becomes necessary to supplement your finances with the help of personal loans. The online process for taking them is very convenient. You can apply with several lenders using their online application forms. This process is quick and does not take more than two to three days to get the money you need. There is no cost of processing involved in online loans.

The interest rate for 15-45 days deposits is 4.75 per cent, for 46-270 days 5.25 per cent and for 271 days to less than 1 year 6.5 per cent, each of them having a cut of 25 basis points. However, the bank raised the rate for deposits on 1 year to 549 days category to 8.25 per cent from 8 per cent.

The guidelines also propose that the Indian Banks' Association, together with the Indian Institute of Banking and Finance (IIBF), conduct a certificate course for direct sales associates, marketing associates and recovery agents.

Earlier ICICI Bank was imposed with a fine of Rs 50 lakh for alleged use of force and coercive methods for recovering loan dues. RBI had then asked ICICI Bank to investigate and take action against the recovery agents involved and review the system of appointing such agents to recover outstandings.

Business Standard reported on November 7, 2007 the bank has tightened its credit filters and loan underwriting practices following the recent incidents. The bank has become conservative and consumers without any credit history will now find it difficult to get loans.

The bank has also rejigged deposit tenures. The bank was offering 8 percent on deposits of1-2 years; it will now offer 8 per cent interest on 1 year to 549-day deposits, 8.75 per cent on 550-day deposits, and 8 per cent on deposits over 550-day deposits to two years.

Media reports that other banks are also expected to follow suit. Banks like IDBI, ICICI Bank, HDFC Bank and Vijaya Bank have reported a sharper rise in interest expenditure than interest income in July-September 2007 from a year earlier. ICICI Bank?s interest income, for instance, grew 37 per cent while its interest expenditure rose by 47 per cent.

HSBC, with its largest footprint in the world and robust technology backbone, will be in a position to offer first-of-its-kind of services to its premier customers seamlessly. This will help moving professionals and travellers alike in managing their finances while on the move.

Currently there is massive liquidity in the system and banks are realigning their rates to market realities. Even banks think a cut in deposit rates would enable them to pare lending rates and thereby meet credit growth targets since there is massive liquidity in the system.