Page 8 - Loans

Micro loans grow 27% in March quarter, stress levels inch up: Report

The micro loans portfolio of various lenders grew by 27 per cent year-on-year for the March 2024 quarter, a report said on Tuesday. After remaining stable or improving over the last many quarters, the stress levels in terms of loan default inched up marginally during the quarter, the report by credit information company Crif High Mark said. At a time when the regulator is flagging concerns on unsecured loans, the data pointed out that personal loan outstandings of microfinance borrowers witnessed the second fastest growth among other retail assets with a portfolio growth of over 38 per cent. The gross loan portfolio grew 28 per cent to Rs 4.42 lakh crore in December, the report said, adding that the growth was 8.5 per cent as compared to the preceding December quarter figure. The top 10 states account for 83.5 per cent of the Gross Loan Portfolio (GLP), it said, adding that West Bengal, Bihar and Uttar Pradesh posted the fastest growth during the January-March period. However, the

RBI must review plan to raise provisions against infra loans: Lobby group

Last month, the Reserve Bank of India (RBI) proposed that banks and non-banking financial companies set aside a provision of 5 per cent of the total loan amount of infrastructure projects

Shriram Finance raises $468 million multi-currency funds as social loans

The fund raise is closely on the heels of a previous transaction where the company raised $404 million

Small credit business finds new ways as unsecured loan growth ebbs

Firms that create differentiated risk assessments and invest in quality solutions will win, say industry executives

JioFin launches beta version of JioFinance app, to offer UPI, digi banking

The app's future plans include broadening the loan offerings, initially focusing on mutual fund loans and eventually branching out to include home loans

IFC extends $500 million credit line to HDFC Bank for micro loans

Presently, non-banking financial companies (NBFCs), including microfinance institutions (MFIs) and small finance banks, are the major lenders to women seeking loans for income generation purposes

China credit shrinks for first time, decreases by almost $28 billion

Credit contracts as government bonds record net repayment

Paytm denies claims on its lending partners invoking loan guarantees

Paytm's non-bank lending partners include companies such as Aditya Birla Finance, Hero Fincorp, Piramal Capital, Poonawalla Fincorp, Shriram Finance, SMFG India Credit, and Tata Capital

RBI proposes floor for banks' loan exposure for project finance

Standard asset provision suggested at 5 per cent in a phased manner

Pak PM Sharif discusses new loan programme with IMF chief Georgieva

Pakistan Prime Minister Shehbaz Sharif has met IMF chief Kristalina Georgieva and discussed a new loan programme for the cash-strapped country to put the economy back on track. In a meeting on the sidelines of the World Economic Forum (WEF) Special Meeting in Riyadh, the premier thanked Georgieva, the International Monetary Fund (IMF) Managing Director, for her support to Pakistan in securing the USD 3 billion standby arrangement (SBA) from IMF last year that was now nearing its completion. Pakistan secured the USD 3 billion IMF programme in June last year, which helped it avert a sovereign default. Pakistan is seeking a new long-term Extended Fund Facility (EFF) after the current SBA expires this month. Both sides also discussed Pakistan entering into another IMF program to ensure that the gains made in the past year were consolidated and its economic growth trajectory remained positive, according to a statement issued by the PM Office on Sunday. Sharif reiterated his government'

NaBFID eyes Rs 1 trillion sanctions for new infra projects in FY25

May tap into overseas market for fundraising in H2FY25

US single-family home construction plunges 5.7%; building permits drop

The report from the Commerce Department on Tuesday also showed permits for future construction of single-family houses fell to a five-month low

Deposit rates raised by public sector banks higher than private peers

The share of bank loans bearing over 8 per cent interest rates increased from 47.2 per cent in March 2022 to 78.9 per cent in March 2023, and further to 83.7 per cent in December 2023

Bank of Baroda hikes lending rates by 5 basis points across three tenures

The one-year MCLR has risen to 8.85%, while the six-month and three-month MCLR rates have been increased to 8.65% and 8.45%, respectively

PM MUDRA Yojana: How to get a collateral-free loan with this Scheme

Government-endorsed scheme is easier to access for small credit amounts

Record household debt: Loans outpace deposits for 3rd year in a row

Debt higher than many BRICS peers, at lower per capita GDP

At Rs 3.55 trillion, REC clocks highest ever loan sanctions in FY24

The NBFC, which has widened its scope beyond pure play power sector, now lends to green energy, infrastructure, and new age energy transition projects as well

Loan against insurance, minding mental health: Top personal finance stories

Our top stories this week tell you about the pros and cons of using your life policy as collateral and what it takes to be mentally fit

Canara Bank launches loan products to meet hospitalisation expenses

State-owned Canara Bank on Wednesday launched a slew of new products, including a loan scheme to meet shortfall of hospital expenditure. A healthcare-focused loan product called Canara Heal is aimed at meeting the shortfall of hospitalisation expenditure while settling through TPA healthcare insurance claims of self and/or dependents, the bank said in a statement. The loan for meeting hospital expenses will be available at 11.55 per cent per annum on a floating basis and 12.30 per cent at fixed interest rate basis. The healthcare loan facility is available for customers whose treatment bill exceeds the insurance limit. The bank also introduced a customised savings account for women called Canara Angel with unique features such as cancer care policy, pre-approved personal loan Canara ReadyCash and online loan against term deposit product Canara MyMoney, it said. It is free of cost for women at the time of opening a savings account, it said, adding that existing women customers can

Microlending portfolio grows 31% to Rs 4.02 trillion in Dec quarter: Report

Microlending portfolio across lenders of all categories grew 30.9 per cent to Rs 4.02 lakh crore during the December quarter. When compared with the preceding September quarter-end, the overall portfolio showed a 6 per cent growth, the report by a credit information company said. Non-banking finance company-microfinance institutions (NBFCs-MFI) continue to dominate the sector, with a market share of 38.3 per cent, followed by 33.4 per cent for banks, 17.4 per cent for small finance banks and 9.4 per cent with NBFCs, it said. From an asset quality perspective, the loans that are not serviced for over 30 days were stable at 2 per cent, while the same for over 90 days was also stable at 0.9 per cent. The average balance per borrower inched up to Rs 48,900 during the December quarter, as against Rs 48,200 in the quarter-ago period and Rs 46,900 in the year-ago period, the data said. A bulk 83.4 per cent of the borrowers had exposure to less than 2 lenders in December, with Tamil Nadu