No relief for Mudra Shishu loan borrowers during moratorium
The subvention will begin from June for the next one year for borrowers that had opted out of the moratorium offer. RBI extended the moratorium benefit till August 31 for borrowers under stress. The ministry also said that banks, NBFC and MFI that channel Mudra loans to the bottom-of-the-pyramid borrowers cannot raise interest rates on Shishu loans till the subvention scheme remains operational.
Chinese banks go slow on large loans
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Federal Bank bets on gold loans to drive credit demand in sluggish economy
The bank is targeting gold loan growth to touch 35 per cent during...
MSME loans dip 7% since March as bankers err on side of caution
The Indian banking sector's exposure to the MSME sector contracted by more than Rs 35,000 crore from Rs 4.8 lakh crore in March to Rs 4.5 lakh crore in May, latest Reserve Bank of India (RBI) data on sectoral credit deployment showed.
April-May bank loan contraction lesser than last year's
Loan growth to all major sectors contracted during April-May, RBI data shows. Loans to industry contracted 1.5 per cent compared to 2.5 per cent dip last year. Loans to services contracted 2 per cent compared to a dip of 5.3 per cent last year. These two sectors account for about 60 per cent of the banking sector's loan portfolio.
Home loan asset quality to be better than personal loans: Report
"Asset quality will likely be impacted most for personal loans and credit cards with home loans and auto loans experiencing less of a shift" said a report by credit bureau Transunion Cibil. Based on a historical analysis of consumer payment hierarchy, the TransUnion CIBIL research observed that when norrowers face financial distress, they pay mortgages first, then personal loans, and cards are the last product to be prioritized in terms of payment obligations relative to those other products.
Lenders want credit scheme to cover securitised loans
Lenders have also requested that they be allowed to extend this scheme to borrowers of those banks and NBFCs that were capital-starved and unable to extend credit to even customers with a good rating.
Lenders prepare for rise in gold loan demand in FY21
Gold loans are a quick way for people to access cash when other avenues are not open," said CVR Rajendran, CEO at CSB Bank. Gold loans also are less risky for lenders as rising gold prices means the loan to value ratio is always kept in check.
Moratorium: Banks oppose waiver of loan interest
The RBI had announced the moratorium, which ends August 31, to protect borrowers hit by the Covid-19 crisis. The lenders opposed any interest waiver and defended the right to charge interest on interest, saying any waiver would set a bad precedent.
Karnataka Bank launches new loan product for small firms
The facility comes with a simplified procedure and competitive rate of interest, the bank said in a press release.
Lenders staring at additional Rs 1.67 lakh crore of bad debts due to Covid-19
The rating agency analysed top 500 debt-heavy private sector borrowers and said the additional stressed loans will take the cumulative quantum of delinquent loans to Rs 4.21 lakh crore over the FY21 and FY22.
Loan recasts to only defer problem, NPAs may zoom up to 14pc due to COVID-19: S&P
The coronavirus pandemic has led to prolonged lockdowns and a chilling of economic activity, forcing the RBI to declare a six-month voluntary moratorium on loan repayments till September.
Bank credit grows 6.18%, deposits 11%: RBI data
Rating agency Crisil in a recent report said bank credit growth is likely to nosedive to a multi-decadal low of 0-1 per cent in 2020-21 as economic activity is sharply impacted by the COVID-19 pandemic.
PSBs luring MSMEs with pre-approved loans
A top government official told ET that public sector banks are trying to reach out to MSMEs, which are their existing customers, for loans under the ‘Atmanirbhar Bharat’ package that promised ₹3 lakh crore in collateral free loan.
Banks sanction over Rs 75,000-cr loans to MSMEs under credit guarantee scheme
The finance ministry on Monday said banks have sanctioned over Rs 75,000 crore loans so far under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector reeling under stress due to the coronavirus-induced lockdown.
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