Page 2 - Loans

MFIs set for better days, as collection improves, loan sales jump

Microfinance players have already come out of the massive hit they took during the pandemic and are likely to report lower credit cost by the end of this fiscal, as growth momentum is on an upswing, says a report. India Ratings has revised the outlook on the microfinance sector to 'improving' from 'neutral' and has also maintained the 'stable' rating outlook for FY24. It expects the sector to notch up high double-digit growth of 20-30 per cent, on improved collections and disbursals. It sees the credit cost to improve to 1-3 per cent from 1.5-5 per cent this fiscal. Microfinance institutions have already absorbed the impact of the pandemic by the December quarter, India Ratings said in a note on Wednesday. It expects the growth momentum to continue in FY24, as disbursements are picking up, which in turn will lead to higher growth. According to India Ratings, there are two key risks for the microfinance sector over the next 12-18 months -- inflation and elections. These may impact

SBI loans to get costlier as bank hikes key lending rate; Details here

Following the RBI MPC's repo rate hike earlier this month, many banks like Bank of Baroda, Bank of India, and Punjab National Bank have also hiked their key lending rates

Loans on debit cards to be governed by digital lending guidelines: RBI

Payment aggregators that work as LSPs have to comply with digital lending guidelines

Expense list to loan tenure: How to stay ahead of rising inflation

Maintain adequate allocation for equities in long-term portfolios for financial security

Sundaram Home Finance eyes disbursements of over Rs 10 cr in business loans

Sundaram Home Finance, the wholly-owned subsidiary of non-banking finance company Sundaram Finance has set a target to disburse over Rs 10 crore under the small business loans segment, a top company official said on Saturday. The city-headquartered company has stepped up presence with the inauguration of an exclusive small business loans branch in Coimbatore. The company has similar branches in Madurai, Tenkasi, Theni, Sivakasi, Tirunelveli, Salem and Rasipuram. "We have had positive feedback from the locations we have launched so far and are targeting to end this year with disbursements of over Rs 10 crore from the small business loans segment, " company MD Lakshminarayanan Duraiswamy said. Sundaram Home registered a 51 per cent jump in net profit for the third quarter ending December 31, 2022 at Rs 53 crore on disbursements of Rs 986 crore. On the inauguration of new branch in Coimbatore, he said, "We have a strong presence in the Coimbatore region for our home finance ...

Kissht to LazyPay: Centre revokes order blocking seven loan apps

Decision taken after presentations from the platforms and reviewing documents justifying compliance, says official

State Bank of India expects moderation in growth in global books

The foreign office advances were up by 21.47 per cent year on year (YoY) basis to Rs 4.86 trillion in December 2022 from Rs 4.0 trillion in December 2021

We continue to be selective on corporate loans: Indian Bank MD & CEO

Our margins in the first quarter was 3.1 per cent, while it was 3.2 per cent in Q2 and 3.7 per cent in Q3, says Shanti Lal Jain

RBI to frame guidelines on penal charges for default in loan servicing

The central bank also said that the penal charges would be recovered from the borrower separately and not added to the outstanding principal amount

Digital lending apps issue clarifications after Centre's ban on loan apps

Some digital lending apps issued clarifications as the industry entered a panic mode after the Centre banned nearly 138 gambling apps and 94 loan apps over "Chinese linkage" concerns

ED attaches Rs 859 cr proceeds of crime in illegal loan app cases: Centre

The Directorate of Enforcement has attached proceeds of crime worth Rs 859.15 crore generated by accused persons/entities through illegal loan apps, Minister of State for Finance Bhagwat Karad said on Tuesday. Further, assets amounting to Rs 289.28 crore have been seized under the Foreign Exchange Management Act, 1999. In a written reply to a query in Rajya Sabha, Karad said Reserve Bank of India (RBI) has furnished the list of Digital Lending Apps (DLAs) being used by regulated entities of RBI to the Ministry of Electronics & Information Technology (MeitY). MeitY has shared the list with respective intermediary (App Stores) and requested them to ensure that only the apps figuring in the list are hosted on their app stores. The RBI's digital lending guidelines issued in September advises measures, including due diligence of Loan Service Providers (LSPs), direct disbursal of loan from bank account of lender to bank account of the borrower without any pass-through/pool or ...

Adani prepays loans worth $1.11 bn, releases pledged shares in 3 firms

Move follows Hindenburg Research accusing Adani Group of improper use of offshore tax havens and stock manipulation

Capex proposals from states may come early in FY24: FM Sitharaman

The 50 year interest free capex loans worth Rs 1.3 trillion are part of the Centre's FY24 capex budget of Rs 10 trillion

Cut financial flab to navigate your way through a turbulent job market

Curtail discretionary expenses and avoid fresh loans amid the current uncertainty

Govt, RBI must tie up to uproot illegal digital lending apps: DLAI

DLAI has also sought clear licensing pathways and operating rules for the ecosystem

Default rate in microfinance sector declining, post-pandemic: Report

Karnataka and Tamil Nadu are the states with the highest percentage of outstanding loans from micro finance followed by Bihar, Uttar Pradesh and Madhya Pradesh

Commercial loan origination volumes dip 4.3% in FY22; avg ticket sizes jump

Commercial lending origination volumes declined by 4.3 per cent to 22.2 lakh loans in the COVID-affected FY22, a credit information company said on Wednesday. If one has to look at the originations by value, there was a 73 per cent jump to Rs 66.49 lakh crore, while the portfolio outstanding at the end of the fiscal grew 8.5 per cent, the report by Crif High Mark said. The average ticket sizes for commercial loans across lenders witnessed a huge spike during the year, with state-owned lenders reporting the number at Rs 3.34 crore in FY22 against Rs 1.65 crore, and that of private banks stood at Rs 3.30 crore compared to Rs 1.85 crore. Commercial lending includes a credit of over Rs 10 lakh to any commercial entity and is further classified as micro, small, medium or large exposures. From a loan stress perspective, there was a decline in the portfolio at risk of loans unpaid for over 90 days in the commercial lending segment, the report said. The stress levels across loan segments,

Paytm's loan disbursals jump 330 per cent in December, GMV up 38 per cent

The number of loans disbursed jumped 117 per cent in December 2022 as compared to December 2021

Sitharaman disburses loans to street vendors, small scale entrepreneurs

Loans worth Rs 2,500 crore were given in a single day to street vendors, small scale entrepreneurs and cattle rearers at a credit outreach program here on Sunday. Union Finance Minister Nirmala Sitharaman and Lok Sabha Speaker Om Birla handed over the cheques to some beneficiaries. Officials said others will receive their loan amounts during the course of the day. The loans were given under schemes like Pradhan Mantri Svanidhi Yojana, Mudra Yojana and Pashupalak Kisan Credit Card. Addressing the event at Dusshera Ground here, Sitharaman said the prime minister himself has given guarantee for loans under the Pradhan Mantri Svanidhi Yojana, so one does not need to produce any document for guarantee. Loans of at least Rs 68 crore are going to be distributed among cattle rearers (Pashupalaks), she added. Many others are being given credit sanction for various business and agriculture purposes, she said. The finance minister also urged women to form Farmer Producer Organisations (FPO

Credit market cracks widen as distressed debt nears $650 billion

Distressed debt in the US alone jumped more than 300 per cent in 12 months, high-yield issuance is much more challenging in Europe and leverage ratios have reached a record by some measures