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Tag: loans

House bill gives small businesses more time to use PPP loans and lets them spend less on payroll

House bill gives small businesses more time to use PPP loans and lets them spend less on payroll

Finance
Wine store employees catalog a new shipment of alcohol on May 28, 2020 in New York City. Government guidelines encourage wearing a mask in public with strong social distancing in effect as all 50 states in the USA have begun a gradual process to slowly reopen after weeks of stay-at-home measures to slow the spread of COVID-19. (Photo by Alexi Rosenfeld/Getty Images)Alexi RosenfeldA bill that passed yesterday in the House of Representatives has some sought-after changes to a forgivable loan program for small-business owners.The new legislation, the Paycheck Protection Program Flexibility Act, addresses entrepreneurs' concerns around loan forgiveness, one of the main attractions of the Paycheck Protection Program. It passed the House on Thursday in a 417-1 vote.Some loan recipients, lik...
Bank of Baroda to appoint agencies to monitor Rs 4 lakh crore NBFC loans

Bank of Baroda to appoint agencies to monitor Rs 4 lakh crore NBFC loans

Finance
India’s third largest bank by loan size Bank of Baroda has taken the lead to monitor the entire NBFC loan portfolio on behalf of all lenders, three people familiar with the development said. It includes marquee names like Bajaj Finance, Tata Capital, HDB Financial Services, Tata Motors Finance, M&M Finance, KKR India, Indiabulls Commercial Credit including 33 non-bank lenders having an exposure of Rs. 4 lakh crore to the banking system. Monitoring agencies would be assessing the asset quality, cash holdings, likely siphoning off of funds if any, flag non-business transactions among a host of others requirements. “Bankers are worried over the performance of the NBFC credit, so they want an assessment of the actual credit quality of their books and the potential stress build up that coul
‘I’m living on cards’: The firms waiting for emergency loans

‘I’m living on cards’: The firms waiting for emergency loans

Business
Businesses are still struggling to access government-backed loans from their banks. Hina Solanki says she has had a nightmare trying to get support from her bank for her tattoo business to get through the lockdown."I can't pay anything. I'm living on cards. It's extremely stressful", she says. For the last fortnight she has been trying to apply for a £50,000 Bounce Back Loan from her bank."But I just get error messages," she says. "They seem to have a technical fault."She's not alone, even though it is nearly two weeks since the launch of the Bounce Back Loan Scheme (BBLS) to prop up stricken small businesses.Hundreds of thousands of applications have been approved, but BBC News has seen a string of complaints about leading banks
Public sector banks sanction loans worth Rs 6 lakh cr in two months

Public sector banks sanction loans worth Rs 6 lakh cr in two months

Finance
NEW DELHI: Public sector banks (PSBs) have sanctioned loans worth Rs 5.95 lakh crore in the last two months to various sectors, including MSME, agriculture and corporate, hit hard by COVID-19-induced nationwide lockdown. Non-bank finance companies (NBFCs) have received Rs 1.18 lakh crore from these banks during the period between March 1 and May 8. "PSBs sanctioned loans worth Rs 5.95 lakh crore for more than 46.74 lakh accounts from the MSME, Retail, Agriculture & Corporate sectors between March 1 and May 8, 2020. Total financing worth Rs 1.18 lakh crore was provided to NBFCs," Finance Minister Nirmala Sitharaman said in a tweet on Tuesday. With the lockdown coming into effect from March 25, state-owned banks opened an additional line of credit of 10 per cent of the existing fund base...
Banks denying loans to MFIs, even for amounts sanctioned

Banks denying loans to MFIs, even for amounts sanctioned

Finance
KOLKATA: Several banks are declining loan demands by microfinance institutions (MFIs), even for those within the sanctioned limits, which may choke the credit flow in the micro and self-employed segments. While the denial of liquidity support from banks has already made life difficult for the MFIs, the refusal of even sanctioned loans is further crippling them. This could result in lower on-lending to end-borrowers leading to a surge in defaults by them, even after the moratorium is lifted. Many of the businesses dependent on MFIs can’t survive without the money flow. The situation is more stifling for smaller and medium-sized entities. Even the bigger firms in top-10 list are not comfortable either, said people familiar with the matter. At least three chief executives ET spoke to said tha