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Tag: repayment

Reliance Home Finance defaults on Rs 40 crore loan repayment to Punjab & Sind Bank

Reliance Home Finance defaults on Rs 40 crore loan repayment to Punjab & Sind Bank

Finance
Ltd (RHFL) on Saturday said it has defaulted on loan of over Rs 40 crore from Punjab & Sind Bank even as the company has enough cash and cash equivalent which it cannot use due to a court order. The Anil Ambani-controlled Reliance Capital's subsidiary defaulted on loan on February 15, 2021, and the current amount of default is Rs 40 crore alongside an interest of Rs 15 lakh. The company's total obligation is of Rs 200 crore on a 5-year tenure secured term loan at 9.25 per cent per annum from Punjab & Sind Bank, RHFL said in a regulatory filing. The company has net cash (including cash equivalent, liquid mutual fund investments, fixed deposits etc) of more than Rs 1,500 crore, it said. "However the delay in debt servicing is due to prohibition on the company to dispose of, alien...
Repayment rising in micro loans; mixed bag for MSME, retail

Repayment rising in micro loans; mixed bag for MSME, retail

Finance
KOLKATA: Repayment collection has been on the upswing in the microfinance sector in lockstep with the stage-gated revival of business in various parts of India, raising expectations of higher cash flows and lower delinquencies for lenders than anticipated earlier, while it's mixed bag for the MSME and retail segments, people familiar with the matter said. About 25-40 per cent of microfinance borrowers have started paying back their dues at the end of May, better than April's 10-15 per cent, as borrowers exhibited improved credit discipline although they could have used the grace period allowed until August 31 by the Reserve Bank of India (RBI). Industry captains expect better June cash flows with routine office attendance resuming in the first phase of the unlocking. Ratio of retail and MS...
Microfinance lenders aim at repayment collection, restoring credit cycle amid rising stress

Microfinance lenders aim at repayment collection, restoring credit cycle amid rising stress

Finance
KOLKATA: Microfinance firms and small finance banks are desperately looking to boost repayment collection to revive cash flow and resume loan disbursement to restore normalcy in credit cycle even as the Reserve Bank of India extended moratorium on payment till August 31 for borrowers under stress. The prime concern expressed by microfinance leaders now is that the extended moratorium might increase stress and derail the robust credit discipline that they nurtured over the years. "It's a disaster," said a chief executive of an MFI. "Many of the borrowers may not able to service loans after the six month of repayment holiday." Merely about 15% borrowers have shown willingness to start repayment till the third week of May, people familiar with the matter said. Repayment rates were down to 12...
This repayment hack could help you knock out credit-card debt faster

This repayment hack could help you knock out credit-card debt faster

Finance
Taking a closer look at your credit card statement could help you dig out of debt faster. Consumers paid off more of their monthly credit card balance — and whittled down big debts faster — when given the chance to target specific purchases on their statement for repayment, compared to when only offered typical repayment options such as making the minimum payment. In other words, instead of plunking down the minimum $ 50, you might nix all your Uber rides, that new pair of sneakers and last week's happy hour tab. That's according to a forthcoming study from researchers at Ohio State University, Harvard Business Sc...