U.S.Subprime Crisis

Executive Summary The objective of doing this project was to understand the evolution and causes of U.S.sub roseola crisis and the repercussions on Indian financial sector specifically Indian banks how a good deal loss they have booked and how in the near proximo they should gear themselves up so that some thing homogeneous doesnt happen in India. OBJECTIVE Understanding and analyzing the U.S.sub acme crisis and repercussions on Indian banking and financial sector. Research Methodology ?Type of research Qualitative in nature ?selective information Collection Secondary data ?Internet ?World bank reports ?Research papers ?Journals An introduction to U.S.subprime crisis What is US sub-prime market? In short, sub-prime ( lend market) refers to the home loan market give to the persons whose credit rating is low due to which they will not get a regular loan at prime lending prise as announced by US Federal Bank. The sub-prime rate argon much higher than prime lending rates.

Presently for a 30-year loan, prime-lending rate is in the set about of 4 to 51/2 percent and sub-prime interest rates ar higher by 200 to 300 behind points over the prime-lending rate as the risk is more for the borrower. The turn down the credit score and the smaller the down payment, the higher are the interest rates. However, the entire structure of rates and fees is higher at sub-prime lenders to cover the greater risk and higher costs of sub-prime lending. By its nature, a higher percentage of sub-primes than of prime loans go into default. Sub-prime lending costs are also higher because more applications are rejected and marketing costs are higher. A sub-prime lender is one who lends to borrowers who do not qualify for loans from mainstream lenders. The interest rate they charge are are uniformly higher than those quoted by mainstream lenders. A sub prime borrower is one who cannot qualify for prime... If you pauperization to get a full essay, order it on our website: Ordercustompaper.com

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