PERSONAL LOANS
Personal loans dearer post RBI risk nudge
Banks adapt to RBI's risk weight changes by adjusting rates and enhancing capital adequacy. The pricing of new loans reflects increased risk, ensuring stability in unsecured lending. Tightened underwriting standards support sustained growth and portfolio quality, aligning with regulatory directives to manage loan risks effectively.
Retail loans moderate for the 10th straight month
The Reserve Bank of India reported that bank lending to the retail sector moderated for the tenth consecutive month in May, reaching 17.8% from 19.1% a year ago. Corporate loans grew faster at 8.9% compared to 6% in May 2023. Non-food bank credit saw a 16.2% growth in May 2024 compared to 15.5% a year ago.
Fintech lenders have high delinquency levels in small value loans says RBI
The RBI has highlighted concerns over consumer loans, noting that over half of borrowers have three or more loans simultaneously. The Financial Stability Report flags high delinquency rates, especially among personal loans under ₹50,000 and loans from fintech lenders. Despite overall improvements in credit quality, stress in retail loans remains significant, particularly for private sector banks.
IBBI seeks to tighten the noose around guarantors of bankrupt firms
The Insolvency and Bankruptcy Board of India (IBBI) has proposed changes in the resolution plan process to hold guarantors accountable, following the Supreme Court's ruling. Stakeholders are encouraged to review and provide feedback on the proposed amendments to streamline the valuation process for stressed firms.
Sonakshi Sinha's to-be father-in-law was Salman Khan's 'personal bank,' gave loans to 'Dabangg' star
Iqbal Ratansi is a multifaceted businessman based in Mumbai, known for his ventures in real estate, entertainment, and jewelry. He is also renowned for his close friendship with Bollywood superstar Salman Khan, dating back to the 1980s. Ratansi's diverse business portfolio includes companies like Stelmac Developers and Zahero Media, showcasing his adaptability and foresight in navigating changing markets.
Top five features of instant loan apps that make them an ideal choice for emergencies
Access quick funds with instant loan apps like Bajaj Finserv's Insta Personal Loan, offering convenience and speed for emergencies.
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Personal loan interest rates June 2024:Which bank is offering the lowest interest rate on personal loans
Personal loan interest rates June 2024: The interest rate on a personal loan varies across lenders and is determined by several criteria, such as the borrower's credit score, loan amount, and loan duration. Here is a list of banks' personal loan interest rates on different amounts.
Rare ARC bids for SBI's claims on Reliance naval loan guarantees
Rare Asset Reconstruction Company is acquiring SBI's claims from personal guarantees by Nikhil and Bhavesh Gandhi. The guarantees were issued for loans to Reliance Naval and Engineering, operated by Swan Energy-led consortium in partnership with Hazel Mercantile through Hazel Infra. The Supreme Court upheld the IBC provision allowing lenders to recover overdue money from corporate debtors' personal guarantors.
Microfinance portfolio rose 26 per cent in FY2023-24: Report
The Microfinance sector's portfolio outstanding reached Rs 442.7k crore, rising 26.8% in FY' 2023-24. Personal loans grew the second fastest at 38.3%, with NBFC MFIs dominating the market at 39.2% share.
RBI sees moderation in unsecured retail loans, tells banks to maintain prudent asset-liability balance
The Reserve Bank of India (RBI) noted a moderation in unsecured retail loans and advances following concerns raised in November 2023. Governor Shaktikanta Das highlighted that growth in personal loans and NBFC funding reliance has slowed. The RBI continues to monitor these trends and has urged financial institutions to maintain risk within acceptable limits.
NCLT admits personal insolvency plea against Rajkumar Dhoot of Videocon
The NCLT in Mumbai has admitted SBI's application against Rajkumar Dhoot of Videocon Group for a Rs 5,353-crore default by Videocon Industries, where Dhoot was a personal guarantor.
Risk weighting slows unsecured loan growth
The growth of unsecured credit in India, including personal loans and credit card outstanding, slowed to 18% in April from 23% in November 2023. The Reserve Bank of India's risk weighting on such exposures aims to reduce delinquencies in the banking system.
Reliance General Insurance's new accident policy covers EMI, loan liabilities
Reliance General Insurance has introduced a new accident policy, Reliance Personal Accident 360Shield, offering coverage for an individual's financial liabilities, hospitalisation expenses, and aftercare needs in case of an incident. The policy aims to provide 360-degree protection to individuals and families from the impact of personal accidents. The policy includes legal assistance and worldwide coverage.
SBI to sell guarantees of Reliance Naval promoter
The bank, in a notice on its website, said that it has principal outstanding dues of Rs 1,160 crore and total dues of Rs 3,512 crore, as of May 31, 2024. The bank stated that it is seeking to assign the residual debt along with the guarantee. Nikhil Gandhi and his brother Bhavesh Gandhi have provided personal guarantees while SKIL Infrastructure provided corporate guarantees on the loan.
Large Indian banks are expected to improve their asset quality in the current fiscal: S&P
India's top banks are set for asset quality improvement in the fiscal year, driven by record profits, which will enhance their balance sheets and underwriting standards. Despite a rise in HDFC Bank's nonperforming loans post-merger, all major banks reported record profits. Retail loans drive growth amid moderating credit expansion expectations.
Top features of personal loans and the factors to consider before getting one
All you need to know about personal loans and what you should keep in mind before opting for one.
Greater transparency: No indemnity clause in NPA sale pact between banks and ARCs
High-street banks and stressed asset firms in Mumbai adopted a 'model agreement' for selling loans but couldn't agree on 'indemnity'. Lenders can declare an account 'fraud' post-sale to ARCs. The industry body approved the Model Assignment Agreement and Model Trust Deed for adoption by banks, financial institutions, finance companies, and ARCs.
Policy on project loans after RBI final rules, says SBI
“The idea to insert a clause with explicit mention of passing it on to the borrower is in line with RBI’s strict stance of making loan documents transparent,” said one of the persons cited above. Secondly, when the regulator increases provisioning norms so sharply, it expects banks to pass them to the borrower, otherwise the purpose of raising the provision is defeated, he added.
Paytm halts postpaid loans, to focus on distribution-only model
Fintech major Paytm's losses widened to Rs 550 crore in the fourth quarter ended March 2024. The same stood at Rs 169 crore in the last year quarter.
Consumer panel directs IDFC Bank to pay Rs 1 lakh to man for deducting EMI for loan he didn't avail
A consumer commission in Mumbai has instructed IDFC Bank to compensate a resident of Navi Mumbai with Rs 1 lakh. The bank wrongly deducted EMIs for a loan he never took. The commission ordered the bank to refund the deducted EMIs with interest and provide the compensation for deficient service and the resulting mental and physical distress within 60 days of receiving the order.
6 Travel expenses for which you can use a personal loan
Personal loans from IDFC FIRST Bank, specifically FIRSTmoney, help cover travel expenses without draining savings. FIRSTmoney's digital loans offer flexible fund access for stress-free travel planning.
RBI warns NBFCs a mode they use for giving loans may bring grief
Bank Loans: The Reserve Bank of India has issued a caution to non-bank finance companies, advising them against becoming overly reliant on algorithm-based credit models. RBI Deputy Governor Swaminathan J flagged the importance of maintaining a balanced approach in credit assessment, highlighting potential risks associated with over-reliance on historical data and algorithms.
Tighter regulations on personal loans and project finance may hurt banks in FY25
Indian banks had a strong fiscal 2024 but face challenges in the current year due to regulatory changes impacting credit growth and net interest margins. Return ratios and riskier lending are also areas of concern as the market adapts.
514 million person years of employment generated in 10 years of the Modi govt: SKOCH
A SKOCH study of 12 central schemes, including the Mahatma Gandhi National Rural Employment Guarantee scheme, the Atmanirbhar Bharat Rozgar Yojana, the Pradhan Mantri Grameen Awas Yojana and the Pradhan Mantri Grameen Sadak Yojana, among others shows that credit gap has fallen 12.1% during the past nine-years.
TVS Holdings to acquire 80.74% stake in Home Credit India Finance for Rs 554 crore
TVS Holdings Ltd on Friday said it will acquire 80.74 per cent stake in Home Credit India Finance Pvt Ltd for an aggregate consideration Rs 554.06 crore.
Are loans against MF investments better than credit card or personal loans? Shweta Jain answers
Shweta Jain advises against impulsive borrowing, recommends loan alternatives to credit cards, and stresses timely repayment. Mutual fund loans offer lower rates, varied tenure, with caution needed on charges and provider selection, regardless of age. Against equity mutual funds, one could get 40-50% of the value. In the case of debt MFs, one can get 80-90% of the value.
HDFC Bank home loan, car loan, personal loan borrowers, check HDFC Bank latest lending rates here
The Marginal Cost of the Fund-Based Lending Rate or the MCLR is the minimum interest rate that a financial institution needs to charge for a specific loan. Check latest MCLR, base rate, benchmark PLR offered by HDFC Bank.
What are Gen Z’s top 3 rules for investing & what are the red flags? Pranjal Kamra explains
Pranjal Kamra warns against accumulating personal loans and credit cards, emphasizing the importance of understanding asset classes, maintaining risk control, and being debt-free to avoid financial pitfalls. Kamra also says that for a beginner, it is virtually impossible to make money in categories like crypto and F&O. Either they border on gambling or they are such complex investment instruments by nature that it is not designed for a retail investor
Cheapest personal loan interest rates April 2024: List of banks offering lowest rates on personal loans
Latest personal loan interest rates: The lowest interest rate on a personal loan is advantageous as it lowers the total amount you must repay the lender. Here are the top banks offering the cheapest rate on personal loans.
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