Page 5 - Loan

Vedanta nears deal to raise $1.25 billion funding via private loan

Representatives for Vedanta also proposed delaying payments on the dollar bonds, a plan that met with investor opposition, Bloomberg reported on Sept. 28

Likely to default on monthly repayment? SBI will send you a chocolate

The nation's largest lender State Bank of India is adopting a novel way to ensure timely repayments, especially by its retail borrowers, by greeting those likely to default on monthly installments with a pack of chocolates. According to the bank, it has been found that a borrower who is planning to default will not answer a reminder call from the bank. So the best way is to meet them at their homes unannounced. The move, aimed at ensuring better collections, comes amidst rising level of retail lending in the system coupled with increasing delinquency levels on the back of the upward movement in the interest rates. SBI's retail loan book grew over 16.46 per cent to Rs 12,04,279 crore in the June 2023 quarter from Rs 10,34,111 crore in the year-ago period, making it the largest asset class for the lender whose total book stood at Rs 33,03,731 crore, growing at 13.9 per cent on-year. In fact for the entire system, the double-digit loan growth of around 16 per cent has been led by reta

Himachal govt to provide collateral-free loan to small-scale enterprises

The Himachal Pradesh government on Saturday announced the launch of a scheme to offer collateral-free loans to small-scale enterprises and skill-based workers such as cobblers, tailors, barbers and vegetable vendors. The state government has earmarked Rs 40 crore for the Mukhya Mantri Laghu Dukandar Kalyan Yojna (MMLDKY) and said that it will target the inclusion of 75,000 individuals falling in the 18-55 age bracket in its initial phase, a statement issued here on Saturday said. The government has devised a comprehensive scheme to offer collateral-free loans, aiming to financially fortify small scale enterprises and would provide accessible loans of up to Rs 50,000 with a substantial 50 per cent interest subsidy, the statement added. "The scheme aims to empower small entrepreneurs and uplift the state's economy", Chief Minister Sukhvinder Singh Sukhu said. He added that the government envisions providing vital support to those who often face hurdles in accessing financial resource

High interest rates may impact borrowers' debt service capacity: FSB to G20

Ahead of the G20 Summit here, Switzerland-based Financial Stability Board (FSB) on Tuesday warned that higher interest rates alongside a slowing growth outlook, could impair the capacity of borrowers to service historically high levels of debt. The FSB has published two letters from its Chair, Klaas Knot, to G20 Leaders ahead of their Summit in New Delhi on September 9-10. The first letter outlines the work FSB has undertaken under the Leadership of India's G20 Presidency to address existing vulnerabilities in the financial system and enhance the resilience of the financial system to structural change. The second letter provides to G20 Leaders an update on the G20 Cross-border Payments Roadmap. FSB, in its communication to G20 leaders, stressed that a resilient and stable financial system is indispensable to sustaining economic growth, particularly in the current environment. FSB notes the challenging backdrop of strong and persistent inflation and slowing growth, and warns that .

Reliance Jio seeks up to $2 billion in offshore loans to fund 5G plan

The report neither mentioned the individual amounts that Jio will pay back to Ericsson, BNP and other entities in the loan deal nor clarified whether BNP was acting on behalf of a consortium

State Bank of India set to measure carbon risk of its Rs 33 trn loan book

The bank plans to engage a consultant or advisor to measure the carbon footprint in its domestic lending portfolio according to internationally accepted norms

Centre directs banks to work in tandem on loans scheme for street vendors

Union MoS for Finance Bhagwat K Karad on Saturday asked banks and civic bodies to work in collaboration with each other to achieve the goals of the PM SVANidhi scheme, which was launched to help street vendors get easy loans. Chairing a regional-level meeting to assess the progress of the scheme in Bihar, Jharkhand, Odisha and West Bengal, Karad asked civic bodies to review the applications returned by banks and resubmit them after rectification. He also asked the civic bodies to work in a 'camp mode' and mobilise fresh applications to achieve the targets in a time-bound manner. Karad encouraged civic bodies to intensify their efforts with innovative strategies to enhance the digital onboarding of street vendors, a statement said. He emphasised on improvement in profiling of the scheme's beneficiaries and their families to facilitate their linkages to various central welfare schemes, it added. The meeting was attended by representatives of the state governments, commissioners of .

Byju's lenders accused of using bogus loan-default claims to gain control

The distressed-debt lenders are "playing hardball" to create leverage in negotiations to restructure the loan and causing problems for Byju's executives

Byju's Aakash unit forced to rework board after breaching loan agreement

Davidson Kempner, which manages more than $38 billion, forced the changes in Aaksah's board as the borrower was in breach of some covenants on a $250 million loan

Clix Capital gets $20 mn loan for promotion of sustainable projects

NBFC firm Clix Capital on Monday said it has signed an agreement with Global Climate Partnership Fund (GCPF) for USD 20 million (about Rs 160 crore) loan. GCPF is a Luxembourg-based innovative impact investing fund managed by responsAbility Investments AG. It finances renewable energy and energy efficiency projects across several developing and emerging nations directly and indirectly. The funding will be earmarked for sustainable projects that help to mitigate climate change, Clix Capital MD and CEO Rakesh Kaul said. He said the deployment of the fund would be done in the next six to eight months. The funding would be made to MSMEs, such as suppliers of solar power manufacturers or those engaged in waste management working towards the reduction of carbon emission, he added. "As climate change mitigation becomes a cross-policy agenda globally, our efforts are aligned to advance sustainable and green lending. As a responsible lender, we are committed to supporting India's green jo

China rolls over $2.4 billion loan to its key ally, cash-strapped Pakistan

China has rolled over a USD 2.4 billion loan to its all-weather ally Pakistan for two years to help the cash-strapped country shore up its foreign exchange reserves, Finance Minister Ishaq Dar said on Thursday. Dar said in a Twitter post that Pakistan was supposed to pay the loan in the next two fiscal years. "Chinese EXIM Bank has rolled over for 2 years principal amounts of following loans totalling US$ 2.4 billion which are due in next 2 fiscal years: FY2023-24: US$1.2 billion FY2024-25: US$ 1.2 billion," he said. "Pakistan will make interest payments only in both years," he added. The development comes a little over a week after Prime Minister Shehbaz Sharif announced that China had rolled over a USD 600 million loan to Pakistan to help its ailing economy. This was in addition to over USD 5 billion in loans that China had rolled over for Pakistan in the last three months to help its key ally avert a default as negotiations to secure the IMF bailout dragged on. China has time

China agrees to reschedule $2 billion debt of Pakistan for 2 years

China has agreed to reschedule over USD 2 billion debt of Pakistan for a period of two years, providing a major relief to the cash-starved government, which is in the process of rebuilding foreign exchange reserves through fresh loans. The Economic Coordination Committee (ECC) of the Cabinet, chaired by Finance Minister Ishaq Dar on Thursday, approved the revised terms of the agreement reached between Islamabad and Beijing, according to senior Pakistani officials, the Express Tribune reported. Pakistan has built two nuclear power plants in Karachi that have a combined generation capacity of 2,117 megawatts. The total cost of the plants is USD 9.5 billion, including the USD 6.5 billion financing from China. The loan was extended by the Export-Import (Exim) Bank of China. Of USD 2 billion, over USD 625 million was maturing in this fiscal year that will now be paused. The USD 6.5 billion is a publicly guaranteed debt, and over USD 2 billion repayments were maturing in two years that ..

Over 50,000 Rajasthan farmers' loans waived off in last 3 years: Minister

The Rajasthan government has waived off loans worth Rs 409.60 crore of 59,983 farmers in the last three years, Cooperative Minister Udayalal Anjana told the state assembly on Thursday. In a written reply to a question by MLA Gopal Lal Meena, the minister said state government schemes waived off loans taken by farmers through the Central Cooperative Banks and Primary Cooperative Land Development Banks. The loan waiver schemes include Rajasthan Farmers Loan Waiver Scheme 2019 (short term) and Rajasthan Farmers Loan Waiver Scheme 2019 (medium and long term), Anjana said. He also said that nationalised banks are under the control of the central government and the decision to waive farmers' loans taken through them can be taken by the Centre.

Vehicle loans outstanding rise 22% in May despite high interest rates

Vehicle loans outstanding increased by 22 per cent year-on-year to Rs 5.09 lakh crore in May, notwithstanding the Reserve Bank's rate hike spree in 2022-23. As per the latest RBI data, the total vehicle loan outstanding climbed from Rs 3.65 lakh crore in May 2021 to Rs 4.16 lakh crore in May 2022, and further to Rs 5.09 lakh crore as of May 19, 2023. The annual rise in loan outstanding was only 14 per cent in May 2022. The RBI started raising the interest rate in May last year to check inflation in the wake of the Russia-Ukraine war and cumulatively increased the repo rate (benchmark interest rate) by 250 basis points in six tranches before pressing the pause button at the beginning of the current fiscal. The retail sales data collected by the Federation of Automobile Dealers Associations (FADA) also reflects rising sales of vehicles across various categories in June. According to FADA, the auto retail sales in June demonstrated a 10 per cent year-on-year growth, encompassing posi

L&T completes transition of $150-mn credit into sustainability-linked loan

Larsen & Toubro (L&T) on Monday said it has completed the "transition" of a USD 150-million term loan into a sustainability-linked loan with Bank of America. Such loans incentivise corporate houses' sustainability performance with lower interest rates. "The sustainability-linked loan (SLL) reiterates L&T's continued commitment to its Environmental, Social and Governance (ESG) goals," the infrastructure major said in a statement. The transaction for the sustainability-linked loan (SLL) was completed on June 30, 2023. R Shankar Raman, group CFO and whole-time director of L&T, said the company continues to focus on achieving water and carbon neutrality by 2035 and carbon neutrality by 2040. The company's long-term strategic plan also outlines the ESG road map towards this goal. "This transition to SLL with Bank of America is yet another step in that journey and underlines our intent on the ESG front," he said. India-based L&T is a USD 23-billion multinational engaged .

Debt-trapped Pakistan set to become fourth biggest IMF borrower: Report

Debt-trapped Pakistan will become the fourth largest IMF borrower in the world after receiving a fresh loan of USD 3 billion in the next nine months under the standby arrangement reached with the global lender. Pakistan, which is facing its worst economic crisis since independence from Britain in 1947, was on March 31, 2023, ranked fifth in the list of countries with the highest borrowing from the International Monetary Fund (IMF), The Express Tribune newspaper reported, citing the global lender's data. However, Pakistan will move to the fourth place in this list when it receives another USD 3 billion in the next nine months under the Stand-By Arrangement made with the Washington-based global lender on Thursday. The deal, which still needs to be approved by the IMF'S board, comes after an eight-month delay. Earlier, in terms of loans from the IMF, Argentina ranked first with USD 46 billion, Egypt stood in second place with USD 18 billion, Ukraine came in third with USD 12.2 billion

IREDA posts 36% YoY growth in loan sanctions at Rs 32,586 cr: CMD PK Das

State-owned IREDA has reported over 36 per cent year-on-year growth in loan sanction at Rs 32,586.60 crore in FY23, its CMD Pradip Kumar Das said. The company has also posted a 34.65 per cent year-on-year rise in loan disbursement at Rs 21,639.21 crore during FY23, Das said in his address to the company's shareholders. Speaking at the company's 36th annual general meeting (AGM), he informed that "loan sanction was at 32,586.60 crore, up 36.23 per cent increase compared to FY22, (and) loan disbursement was at 21,639.21 crore, a 34.65 per cent growth compared to FY 22". The company's loan book stood at Rs 47,076 crore, higher than 38.75 per cent in FY22. It has also reported a profit before tax (PBT) of Rs 1,139.25 crore and profit after tax (PAT) of Rs 864.63 crore, respectively, in the last fiscal. Its net worth rose 12.66 per cent to Rs 5,935.17 crore in FY23, the CMD said. "IREDA actively engages in partnerships with green energy developers to recognise their evolving requireme

Ukraine to receive $1.5 bn from World Bank to support reconstruction

Ukraine is rebuilding schools, hospitals, roads and bridges and implementing repairs in the energy sector despite continued fighting in the south and east of the country

How do Economic Factors Impact Interest Rates for Business Loans?

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Reliance Jio in talks to raise about $1.6 billion for equipment from Nokia

Banks involved in the discussions with billionaire Mukesh Ambani's telecoms company include Citigroup Inc., HSBC Holdings Plc. and JPMorgan Chase & Co., said the people