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Tag: loans

RBI cautions government over NPA spike in MUDRA loans

RBI cautions government over NPA spike in MUDRA loans

Finance
NEW DELHI: The Reserve Bank of India (RBI) has raised a red-flag on the spike in non-performing assets (NPAs) under the government's flagship scheme to support micro enterprises in the country -- the Pradhan Mantri Mudra Yojana. According to Finance Ministry sources, RBI has cautioned the ministry that the scheme might turn-out to be the next big source of NPAs, which have plagued the banking system. The central bank has flagged that bad loans under PMMY have risen to Rs 11,000 crore. As per the annual report of PMMY, 2017-18, total disbursements under the scheme stood at Rs 2.46 trillion in FY 18. Out of this, 40 per cent were disbursed to women entrepreneurs and 33 per cent to social categories. More than 4.81 crore micro borrowers have benefited through PMMY during the year FY2017-18. T...
Clear bank dues when loans are waived: Nabard to states

Clear bank dues when loans are waived: Nabard to states

Finance
NEW DELHI: Amid a flurry of farm loan waivers, financial institution Nabard has written to states advising them to ensure that dues of banks that actually write-off the loan are immediately cleared to ensure that the credit cycle is not broken. The move follows the experience of several lenders in Andhra Pradesh and Tamil Nadu, where the dues have remained pending although they had written off the loans based on announcements from the state governments, banking sources said. In 2016, while announcing the Rs 6,000-crore loan waiver, Tamil Nadu, for instance, had decided to clear the dues of over Rs 3,200 crore to cooperative institutions over five years. States, such as Uttar Pradesh, have cleared the dues to lenders, the sources added. Nabard's advisory will put pressure on the states to ...
ETMONEY partners with Fullerton India to offer personal loans up to Rs 20 lakh

ETMONEY partners with Fullerton India to offer personal loans up to Rs 20 lakh

Finance
New Delhi: ETMONEY, a Times Internet-backed fintech company, announced its partnership with Fullerton India Credit, a non-banking financial company with a pan-India presence, to offer personal loans up to Rs 20 lakh in a hassle-free manner with minimal documentation. In May this year, ETMONEY forayed into the lending space with a unique LoanPass solution that enables anyone to take recurring, small ticket unsecured loans with a single tap on their smartphone. It has seen great initial success with that, and is on track for annualised disbursal of Rs 120 crore through LoanPass. The present partnership with Fullerton India will allow ETMONEY to leverage the latter's expansive presence across the country to offer unsecured loans for various credit needs arising from marriage, medical emergenc...
HDFC Bank's auto loans to have step-up repayments

HDFC Bank's auto loans to have step-up repayments

Finance
MUMBAI: In a bid to expand the auto loan market in the midst of a slowdown, HDFC Bank has introduced a scheme that increases car affordability through step-up repayments and bullet repayments - in which the principal and interest of the loan are paid at one go. According to HDFC Bank executives, the step-up repayment feature would reduce installments by 22-25%, while the bullet repayment feature will enable them to pay equated monthly installments (EMIs) for only 30-50% of the loan amount. One out of every four cars that is purchased on loan, is financed by HDFC Bank. The country's largest auto financier is facing a slowdown as car sales have taken a hit. Car sales are slower because of five reasons: High fuel prices, availability of cab aggregators in cities, courts making it mandatory to...
Here are the colleges doing away with student loans, by state

Here are the colleges doing away with student loans, by state

Finance
Americans leave college today with more debt than ever before. Some schools are trying to reverse the trend by instituting a no-loans policy. Most recently, Michael Bloomberg, the former mayor of New York City, announced he would give $ 1.8 billion to his alma mater, John Hopkins University, so that the college can substitute loans for scholarship grants. "It will ease the burden of debt for many graduates," Bloomberg wrote in an Op-Ed for the New York Times. Student debt burdens Americans more than auto or credit card debt. The average graduate leaves school $ 30,000 in the red, up from $ 10,000 in the early 1990s. ...