Page 5 - 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

An innovative approach to domestic staff loans

This system could convert 15 crore households into social venture capitalists, offering Rs. 75,000 crore worth of microloans to staff, and integrating the latter into formal lending

Reliance in talks with lenders for $2 billion loan to fuel expansion

Ambani is raising funds as he continues to build out the telecoms and consumer-facing arms of an empire based on a bedrock of crude-oil refining

Pakistan seeks fast-track refinancing of $1.3 billion loans from China

Cash-strapped Pakistan has requested its all-weather ally China to fast-track the refinancing of maturing commercial loans of USD 1.3 billion and apprised it of the diminishing prospects of revival of the IMF loan programme, a media report said on Tuesday. The request was made on Monday by Finance Minister Ishaq Dar during a meeting with China's Charge d'affaires Pang Chunxue, The Express Tribune newspaper reported. Officials said that the finance minister raised the issue of refinancing the two Chinese commercial loans amounting to USD 1.3 billion, maturing in the next two to three weeks. Chinese authorities have already assured Pakistan that they will refund both loans, but Islamabad wants the money to be re-lent as soon as it is paid back, the report quoted sources as saying. Dar urged the Chinese charge d'affaires about timely refinancing the loans, which will prop up Pakistan's foreign exchange reserves. Pakistan is scheduled to make a debt repayment of USD 300 million to the

Microfinance loan portfolio up 22% to Rs 3.48 trillion in FY23, shows data

Microfinance loan portfolio increased by 22 per cent to Rs 3.48 lakh crore during 2022-23, according to a report. Gross loan portfolio stood at Rs 2.85 lakh crore as on March 31, 2022. Microfinance loan disbursals during FY 2022-23 improved by 23 per cent to Rs 2,96,423 crores compared to Rs 2,39,433 crore in the previous financial year. About 7.17 crore loans were disbursed during FY 22-23 as against 6.30 crore in the previous year indicating higher ticket size of new loans, microfinance institutions network (MFIN), the microfinance industry association and an RBI-recognized self-regulatory organization. The microfinance active loan accounts increased by 14.6 per cent during the past 12 months to 13 crore as on March 31, 2023. In terms of regional distribution of gross loan portfolio, East & Northeast and South account for 63 per cent of the total portfolio. Bihar is the largest state in terms of portfolio outstanding followed by Tamil Nadu and Uttar Pradesh, it said. It furthe

ABD, govt sign $130 mn loan agreement to increase agriculture in Himachal

The project will include new irrigation schemes that will improve on-farm irrigation in 6,000 hectares of farmland; it will help farmers enhance their access to markets of subtropical horticulture

South Indian women outnumber men in availing of loan for street vendors

According to urban affairs ministry, of the total number of beneficiaries (3.6 million) of the scheme in the country, 2.13 million are men and 1.5 million are women

Adani Group repays loans worth $2.65 bn to complete prepayment programme

Embattled Adani Group on Monday said it has repaid loans aggregating USD 2.65 billion to complete a prepayment programme to cut overall leverage in an attempt to win back investor trust post a damning report of a US short seller. In a Credit Note released on Monday, Adani Group said it has made a full prepayment of USD 2.15 billion of loans that were taken by pledging shares in the conglomerate's listed firms and also another USD 700 million in loans taken for the acquisition of Ambuja Cement. "The prepayment was done along with interest payment of USD 203 million," it added. Further, the credit update states that the promoters completed the sale of shares in four listed group entities to GQG Partners, a leading global investment firm, for USD 1.87 billion (Rs 15,446 crore). "The deleveraging programme testifies to the strong liquidity management and capital access at sponsor level even in volatile market conditions, supplementing the solid capital prudence adopted at all portfolio

Edtech major Byju's faces deadline for $40 million payment of $1.2 bn loan

The $1.2 billion debt is the largest unrated loan by a startup ever. The once high-flying company led by former teacher Raveendran had been trying to strike a deal with creditors to restructure loan

Maintaining high loan growth difficult, but book will grow robustly: ABCL

Maintaining the high loan growth seen in FY23 will be difficult for Aditya Birla Finance, but the company is confident of growing the book robustly given the opportunities it sees in the market, a top official said on Wednesday. The company, a wholly-owned subsidiary of Aditya Birla Capital (ABCL), the financial services arm of the conglomerate, had posted a 46 per cent growth to Rs 80,556 crore in FY23. "46 (per cent) is a large number, it is very difficult to continue to maintain that kind of a thing. As I said that we have created scale and size in our business, and we see the opportunities in the market (are) immense. "We have put all the building blocks in place, so I don't see a reason why we shouldn't grow robustly as we go forward," Aditya Birla Capital's chief executive Vishakha Mulye told reporters. She also said the robust loan growth it is planning will also outperform the market. When asked if the Rs 3,000 crore capital infusion ABCL is planning will go to the lending