Page 16 - Loans

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

Retail, farm segments set to drive credit growth in FY23: CRISIL

Banks' net interest margin should expand in the near term despite credit costs expected to normalise

Pakistan to seek US help to secure $13 bn loans at Geneva meet for projects

Over two dozen infrastructure projects worth $13 billion will be shared that have been cleared by relevant and competent forums and are ready to be invested in at any time

Give loans at lower rates on clean energy vehicles: Gadkari tells banks

Union Minister Nitin Gadkari on Friday asked banks to give loans at reduced interest rates to those seeking to buy vehicles that run on clean energy, including flex fuel, electricity and hydrogen. Speaking at the golden jubilee celebrations of a cooperative bank in Kalyan in Maharashtra's Thane district, the Union Minister for Road Transport and Highways said it was his dream that vehicles running on diesel and petrol get phased out in the next four to five years. He said banks must rate industries based on thee performance on various parameters over the past five years and give those scoring high marks loans within 24 hours, adding credibility and goodwill would be the biggest capital in the 21st century. Speaking about passenger benefits if public transport turns towards electric vehicles, Gadkari said the cost of operation of a non-air conditioned electric bus is Rs 39 per kilometre, while it is Rs 41 per kilometre for an AC electric bus. "All buses in cities like Thane, Kalyan

Banks have written off loans worth Rs 11.17 trillion in last 6 years: Govt

Banks have written off Rs 11.17 lakh crore bad loans from their books in the last six years till financial year 2021-22, Parliament was informed on Tuesday. The non-performing assets (NPAs), including those in respect of which full provisioning has been made on completion of four years, are removed from the balance sheet of the bank concerned by way of write-off, Minister of State for Finance Bhagwat Karad said in a written reply. Banks write off NPAs as part of their regular exercise to clean up their balance sheet, avail tax benefit and optimise capital, he said, adding, the write-off is carried out by the banks in accordance with RBI guidelines and policy approved by their boards. "As per RBI data, public sector banks (PSBs) and scheduled commercial banks (SCBs) wrote off an aggregate amount of Rs 8,16,421 crore and Rs 11,17,883 crore respectively during the last six financial years," he said. With regard to the list, including names of write-offs/defaulters who have defaulted m

Loans worth Rs 1,009,511 written off in last 5 financial years: Sitharaman

Scheduled commercial banks have written off loans amounting to Rs 10,09,511 crore in the last five financial years and the process of recovery of dues from the borrowers continues, Union Finance Minister Nirmala Sitharaman informed the Lok Sabha on Monday. Sitharaman said recovery in NPA (non performing asset) accounts, including written-off loans, was an on-going process. According to Reserve Bank of India (RBI) data, public sector banks have recovered Rs 4,80,111 crore, including Rs 1,03,045 crore from written-off loans, during the last five financial years, she said. "As per inputs received from the RBI, scheduled commercial banks have written off an amount of Rs 10,09,511 crore during the last five financial years," Sitharaman said during Question Hour. The borrowers of written-off loans continue to be liable for repayment and the process of recovery of dues from the borrower in written-off loan accounts continues, she added. Banks continue to pursue recovery actions initiated

Microfinance loans grow 11% to Rs 71,916 crore in Q2 FY23: Report

Microfinance loans in the country grew by nearly 11 per cent to Rs 71,916 crore during the second quarter of the current fiscal, industry data showed. Microfinance loans worth Rs 64,899 crore were disbursed during the same period a year ago. In terms of volume, a total of 1.81 crore loans were disbursed during Q2 FY2022-23, as against 1.85 crore loans in Q2 FY2021-22, as per the latest report by Microfinance Institutions Network (MFIN). According to the MFIN Micrometer Q2 FY2022-23 report, the country's microfinance loan portfolio stood at over Rs 3 lakh crore at end-September 2022, serving 6.2 crore unique borrowers with 12 crore loan accounts. "The overall microfinance industry currently has a total gross loan portfolio (GLP) of Rs 3,00,974 crore as on September 30, 2022... an increase of 23.5 per cent year-on-year over Rs 2,43,737 crore as on September 30, 2021," the report said. Of the total micro loans outstanding, the largest share of 37.7 per cent is held by 13 banks, amoun

Indian banks' loans rose by 17.5% y-o-y in 2 weeks till December 2: RBI

Indian banks' loans rose 17.5% in the two weeks to Dec 2 from a year earlier, while deposits rose 9.9%, the Reserve Bank of India's weekly statistical supplement showed on Friday

Loans of Rs 7.62 trillion provided to thermal power plants in India: Report

Loans amounting to Rs 7.62 lakh crore have been provided by 84 lenders, both national and international, to thermal power projects in India, with a capacity of 1,000 MW and above between 2005-2022

Higher penetration doubles quarterly MSME loan disbursals since 2020: Rpt

The disbursals have been led by increased penetration as the approval rate for medium risk loans remained stagnant between FY21 and FY22: MSME Lending Report 2022