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French aid for Bengaluru Metro: Rs 1,504 crore as soft loan


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.

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.

“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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Top 8 Reasons Why More People Have Started Applying For Personal Loans

Here are the top 8 reasons why people have started applying for a personal loan

Personal Loans
In terms of documentation, the process of applying for a personal loan is quite simple and easy. Taking the online route for application makes it even quicker. Pixabay

Personal loans have emerged over the years as the most sought after option for meeting personal financial ends. Despite being unsecured (requiring no collateral) in nature, personal loans are easier to obtain. Whether one is a salaried or self-employed individual, the facility will not be restrained to him unless his credit score is rather poor. The amortization period in a personal loan is also highly flexible. The loan repayment tenure ranges from 12 months to 5 years depending on numerous factors. A loan tenure plays an integral role in taking a financial decision. Having the knowledge of the loan repayment tenure enables a borrower to compute the EMI he will have to pay on a timely basis. With the assistance of a personal loan EMI calculator, one can make an estimate of the EMI amount. To check personal loan with EMI calculator is quite simple: it only requires the following details to be entered:

  • Loan amount borrowed
  • The time or tenure allotted to repay the loan
  • The interest rate charged at the personal loan

 In terms of documentation, the process of applying for a personal loan is quite simple and easy. Taking the online route for application makes it even quicker.  

With these benefits in view, people usually prefer a personal loan option to finance their myriad needs. However, apart from the usual benefits they get, people opt for this also because of certain reasons or events they encounter in their life. To confront these financially demanding situations, picking out a personal loan is a great option as it helps to steer away from this economic hurdle. 

Here are the top 8 reasons why people have started applying for a personal loan.

Wedding Expenses

Indian weddings have a grandeur about themselves. Often stretching for a week, the expenses incurred in them are sufficient to drain one’s savings. To reduce the impact of the financial blow, a personal loan serves as a great option. The loan offers the requisite amount a borrower would need for a wedding ceremony without taking away his savings at once. The loan tenure opted by the borrower will provide him time enough to repay the debt in instalments, otherwise known as EMI. Use a personal loan EMI calculator to assess the extra amount needed to be paid for the loan. A personal loan, thus, prevents one from compromising his dream wedding plans due to financial constraints and rather encourages to go full-fledged in organizing the celebration.      

Starting a New Business

A new business venture requires a good deal of money in the form of capital. Every business incurs expenditure of a wide range from the purchase of assets to dealing with liabilities. Even the profits are uncertain and unpredictable. Moreover, the risk of facing a loss is also quite present. To help deal with these uncertainties, a personal loan is like a boon. It helps one cope with the temporary losses incurred in the business without jeopardizing the risk-taking ability of the firm in the near future. The prospect of tax deductions is possible if the loan has been taken with the sole view of investing it in the business. Then the interest paid on the personal loan can be shown as a tax-deductible expense With the help of a personal loan EMI calculator it’s easy to assess the total amount needed to be paid for the loan inclusive of the rate of interest.

A personal loan can be taken for a wide range of specified and unspecified reasons.

Medical Bills

Medical emergencies may come unannounced and can cause a disruption in one’s financial stability. A personal loan in this regard is a good option to go for as it will shed the immediate load from one’s shoulder. This way a borrower can presently spend the loan amount for paying the medical bills and then later pay the loan amount in instalments. Check how much EMI one will need to pay with the help of a personal loan EMI calculator. 

Purchasing a New Vehicle

Buying a new vehicle is often a long desire for many. With the purchasing amount being no less than a few lakhs, a buyer remains in a quandary on how to arrange the hefty amount at once. A personal loan serves as the best option for him. Being a type of unsecured loan, it does not require the borrower to put his newly bought vehicle to be used as collateral – which, otherwise, he will have to if he takes a car loan or any other form of a secured loan. You can use a personal loan EMI calculator to calculate the monthly EMIs that needs to be paid.

Paying off Credit Card Debt

Credit card debts, if kept accruing, can put immense pressure on the cardholder. Also, it keeps damaging the credit score. In order to get away from this situation, a personal loan can act as a big relief from the credit card debt. You can even be financially prepared by calculating the monthly EMIs using personal loan EMI calculator, online. A personal loan can be used to pay off the credit card debts at once and then the borrower can take his time to repay the loan, that too on lesser interest rates. 

For a Vacation

Going for a vacation is the most ideal way of spending one’s holidays. It becomes all the more special if the chosen destination is some foreign location. However, the biggest hurdle may come off in the form of finance. A personal loan is just the remedy for this problem. Use a personal loan EMI calculator to evaluate how much you will have to pay each month for the luxurious tour

Renovating Home

A home renovation incurs heavy expenses which may make the house owner defer the expenditure for some later time. A personal loan provides a solution to this. Why wait to repair some part of your house, be it kitchen or bathroom and leave some segments? Or to drain all savings in a complete renovation? With a personal loan, one would not need to disburse all his savings at once. The loan can be paid in due instalments, the amount of this can be seamlessly calculated using a personal loan EMI calculator.  

Personal loans have emerged over the years as the most sought after option for meeting personal financial ends. Pixabay

Educational Purposes

Education plays an important part in everyone’s life. It is a sure-shot way of getting success in the future. However, owing to the high expenses required to finance higher education, one may make many compromise on his preferred career destination. Be it admission and tuition fee, the educational cost is usually at the high end. A personal loan helps in coping with the bulk sum required to get admission and pay the fee for a good educational institution. The loan tenure will help one pay the large amount in relatively smaller bits at regular intervals. 

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Comparing the interest rates offered from different lenders will be a good option to start with. The thing to be kept in mind about the personal loan is that if tenure is chosen for the longer period the EMI to be paid will be lesser. However, the condition is that one will have to pay more interest in the longer run. Whereas, if one opts for a shorter tenure, the amount needed to be paid in EMI will be higher. The good thing, though, is that the interest charges will be lesser. Checking out the monthly payment details using a personal loan EMI calculator is a good practice.