Tuesday November 19, 2019
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French aid for Bengaluru Metro: Rs 1,504 crore as soft loan

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www.afd.fr

By NewsGram Staff Writer

Bengaluru: In a bid to speed up the already delayed sate-run Bengaluru Metro rail project, a French development agency on Friday announced 200-million euro (Rs1,504 crore) as soft loan for its second phase.

Financing the Metro rail project was part of the credit facility agreement Agence Francaise de Developpement (AFD) signed with the Indian government in New Delhi on September 3.

www.afd.fr
www.afd.fr

Paris-based AFD is a public development finance institution, which implements the French government’s policies and supports projects that improve living conditions, boost economic growth and protect the planet through a network of 71 agencies the world over.

“The new funding is in addition to the 110-million euros we gave in 2012 for the project’s first phase,” AFD regional director (South Asia) Nicolas Fornage told reporters after signing an agreement with Bangalore Metro Rail Corporation Ltd. (BMRCL) managing director Pradeep Singh Kharola here.

The second phase project, estimated to cost a whopping Rs 26,405 crore at the 2011-12 price level for extending the 42 km first phase by an additional 72 km, was approved by the previous (UPA-2) government on January 30, 2014.

According to Kharola, the loan repayment will be over 15 years at interest rate linked to Euro inter-bank offered rate.

www.prokerala.com
www.prokerala.com

“The Metro rail project is aimed at improving the public transport system in the city, which has grown rapidly over the last two decades on IT boom and influx of people from all over the country,” Karnataka Chief Minister Siddaramaiah said on the occasion.

Of the estimated cost, the central government would provide Rs 5,281 crore and the state government Rs 8,983 crore, while the remaining amount would be raised through debt from multilateral or bilateral funding agencies like AFD and JICA and Indian financial institutions.

The Japan International Cooperation Agency (JICA) had also contributed to the project’s first phase, while the Asian Development Bank has agreed to grant a $250 million (Rs165 crores) loan for the second phase.

The second phase is expected to be taken up in 2017 after the first phase, which is three years behind schedule, with its cost escalating to over Rs 12,000 crore from Rs 8,000 crore in 2008.

As the country’s third biggest city and hub of the new economy, Bengaluru has about one crore denizens, with 55 lakh vehicles and a floating population of 15-20 lakh daily.

“The Metro network across the expanded city will ease traffic congestion, reduce pollution and promote low-carbon mobility,” AFD said in a statement.

French consul-general Francois Gautier was also present on the occasion.

(With inputs from IANS)

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Payday Loans: Why They Have a Bad Rep and How You Can Benefit From Them

There are payday loan companies out there that have mistreated their customers in the past that people just assume that all the companies are like that

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Loans
Payday Loans that ask you for money upfront are more than likely going to be scams. You might see them listed online as advance fee loans and these are notorious internet scams that have cost lots of people money that they’ll never get back. Pixabay

Whenever financial emergencies come up, the most reliable and, pretty much guaranteed way of getting money fast, is by way of getting a payday loan. The process to get money in your time of need is so easy… you can apply and qualify in minutes! So, if Payday Loans are so awesome in helping millions of consumers in their time of need, why has it gotten such a bad rep?

Well, you know how in certain situations, all it takes is one person to mess things up for everyone else? That’s how the payday loan industry got such a bad reputation. There are payday loan companies out there that have mistreated their customers in the past that people just assume that all the companies are like that… It’s more so the unlawful acts that made people turn away from payday loans.

Unlawful Acts of Payday Loans

Some of the unlawful acts that have been done to customers include:

  • Not fully disclosing all the terms of the agreement
  • Tacking on excessive interest rates
  • Requiring money upfront

Payday loans that ask you for money upfront are more than likely going to be scams. You might see them listed online as advance fee loans and these are notorious internet scams that have cost lots of people money that they’ll never get back. According to fraudguides.com, the way advance fee loans work is the victim will agree to pay a “finder’s fee” before getting the loan. 

In order for the deal to be sealed, the victim will have to sign a contract and within the contract, there is language and lingo that the victim will agree to pay that fee when they know the source of where their funds will be coming from. It’s not until they pay the “finder’s fee” that they learn that they are disqualified to receive the financing they need.

There obviously scams all over the world… there were actually 5 scams that really shook India back in 2015 but the bottom line is that with scams, if something is too good to be true, it probably is. Just pay close attention to what the qualifying requirements are and if they seem suspicious, look for something else… you shouldn’t have to pay money when you need it.

Why Payday Loans Have Gotten Such a Bad Reputation

Customers aren’t fully aware of all the terms of the loan agreement

This area was touched on earlier but to be fair, the reason for this can go both ways. It’s easy to say that the payday loan representative did not disclose all terms of the loan agreement with you but is that really the case? Sometimes the reality of why people find themselves in more debt than they bargained for is because they weren’t fully paying attention to the terms as the payday loan representative was stating them.

It’s very easy to do. The representative could be disclosing everything you need to know but you have this financial burden weighing heavily on your mind that you don’t even hear what the terms of the agreement are… you just simply “sign here” and “initial there” so you can get the money you so desperately need.

Now, it’s very possible that a payday loan company purposely didn’t disclose everything with a borrower simply because they want to get money but lenders are required by law to disclose everything in the loan agreement, including the repayment schedule and interest rate.

Payday Loans
Whenever financial emergencies come up, the most reliable and, pretty much guaranteed way of getting money fast, is by way of getting Payday Loans. Pixabay

The interest rates tend to be higher

Okay, so payday loan interest rates are quite high but you have to look at what you’re paying for in your interest rates… you’re paying for convenience. With payday loans, you’re getting the money you need almost instantly and they don’t do credit checks. So people with bad credit can get approved… if you were to go to a regular loan company, you would immediately be denied due to having bad credit and even if you had good credit, it could take weeks for you to get the money you need, depending on how much you’re asking for. 

So, before you continue on a rant about how bad payday loans are, remember what you’re you’re actually getting; you’re getting the money you need immediately and without a credit check.

Borrowers misuse payday loans

It’s not always the lender’s fault as to why you had a bad experience with payday loans… sometimes you’re to blame because you weren’t a responsible borrower. People don’t fully understand the purpose of payday loans… Payday loans are meant to be used for emergency situations to bring financial relief to those who need it. Instead, people use payday loans to pay for vacations and to buy expensive items. 

When people borrow for those reasons, that’s when you land yourself in financial ruin. What was meant to be “financial relief” has now turned into a financial nightmare… you then find yourself renewing the loan each pay period, not being able to pay it off or pay it down. 

Payday Loans
Payday Loans are meant to be used for emergency situations to bring financial relief to those who need it. Instead, people use payday loans to pay for vacations and to buy expensive items.  Pixabay

Borrow Responsibly

The whole reason people find themselves in more debt than they started out in is because they didn’t borrow responsibly. Of course, there are bad companies out to scam you but the secret to do your part and research reputable companies. If you can do that in conjunction with borrowing responsibly you’ll be able to borrow from anywhere.

ALSO READ: Ram Mandir To Be Built In Ayodhya By 2022

Also, a word of advice… learn to make better financial decisions. If there is something that you don’t necessarily need, you shouldn’t buy it, especially if you’d have to take out a loan to get it; it’s just not that serious. Try to only borrow when you absolutely have to.