Related Business Loan News
Lendingkart, Bank Of India To Co-Lend This Much Credit Under Mudra Loans To Msmes
Harshvardhan Lunia, CEO & Founder at Lendingkart said, “Our growing partner base comprising of marquee banks and co-lenders are enabling us to take a step forward towards realizing our aspiration of strengthening MSMEs through an effective collaboration” Lendingkart has partnered with the Bank of India for a co-lending contract to cater to the increasing credit demand from the MSME sector. The tie-up will oversee last-mile collateral-free finance to over 5,000 customers with disbursals of Rs 1-10 lakh loans up to Rs 250 crore under Mudra loan. Lendingkart will employ its technology platform 2gthr, software-as-a-service (SaaS) platform built by the company banks and NBFCs to onboard within two weeks and provide loans to MSMEs. Harshvardhan Lunia, CEO & Founder at Lendingkart said, “Our growing partner base of marquee banks and co-lenders are enabling us to take a step forward towards realising our aspiration of strengthening MSMEs through an effective collaboration.” Lendingkart has disbursed over 11,500 crore loans to more than 1.6 lakh MSMEs. However, banks had deployed Rs 17.99 lakh crore to MSMEs in October 2022.
News updated Date: 16th December 2022
According To Cea, The Indian Fintech Market Would Reach $1 Trillion By 2030
With a market size of $31 billion in 2021 and an anticipated growth to $1 trillion by 2030, India is among the fastest-growing fintech marketplaces in the world, according to V. Anantha Nageswaran, Chief Economic Advisor of India. There has been a significant shift toward a more equitable investment allocation across industries, including InsurTechs and WealthTechs. Therefore, the emphasis right now is on how technology and finance are working together to enable access to possibilities and financing, and he said on Tuesday while addressing the Global Fintech Fest 2022 (GFF 2022) in Mumbai.
News updated Date: 06th September 2022
Over 1.5 Lakh Kiranas Opted For Msme Registration Since Inclusion Of Wholesale, Retail Trades Under MSMEs
There has been a drive from the Government of India for MSME (Micro Small and Medium Enterprises) registration since the launch of the Udyam portal for easy online registration since the inclusion of wholesale and retail stores in 2021. The response has been overwhelming and 158,318 grocery or general stores known as neighbourhood kiranas have registered themselves as SMEs in the Udyam portal. The direct benefit of registration has been the inclusion of the registered MSME’s under the scheme of priority sector lending (PSL) by banks. PSL is the provision of loans at concessional rates for weaker sections of the population. This move brings the retail and wholesale traders back under the MSME fold after being removed in 2017. For the moment, these traders shall be eligible for PSL loans only and not the other MSME benefits. This sector has helped the Udyam portal achieve and surpass the 1 crore mark for registrations.
News updated Date: 11th August 2022
With Hike In Rbi Repo Rate, Retail And Small Biz Loans Are All Set To Get Costlier
The ground-breaking decision by RBI to increase the repo rate by 50 basis points has created shock waves among small businesses, retail borrowers and a specific category of corporate customers, as they now have to pay more in interest payouts. The loans linked with the repo rate, such as the floating rate loans, are automatically re-priced. An important point to note here is that new loans will bear the brunt of this change in the repo rate. Whereas existing loans would take some time, that is the reset day at which the increased interest rate would be applied to them. RBI has directed the banks to reset the loan interest rates every three months as they are linked to external benchmarks. Coincidentally, this is the second hike in repo rate, the most recent hike happened in May when the RBI increased the repo rate by 40 basis points. Experts say that the increased interest rates will have a direct effect on loans that are associated with the external benchmarks. Some examples are home loans and Small & Medium enterprise loans.
News updated Date: 17th June 2022
Lendingkart launches ‘business loans bole toh sirf Lendingkart’ campaign with Rajkumar Rao
News updated Date: 05 June 2022
Bank Credit Has Grown By Twice The Amount In March-2022
CareEdge reported that the Bank Credit Growth has nearly doubled in March 2022, propelled by Retail and Financial Year Closing. It has risen by 9.6% year on year and grown by 402 bps compared to the 5.6% last year. Some of the factors that played a role in this were retail loans, a rise in working capital loans, increased inflation, and boosted capital by corporates from banks. This has been quite a growth after outshining Deposit Growth after 2.5 years. Credit offtake of 9.6% y-o-y for the fortnight concluded on Mach 25 this year is better than 5.3 to 6.7 in the first H1FY22. With the gradual relaxation of COVID restrictions, the development of bank credit has resumed. The Union Budget 2022-23 is said to aim to expand CAPEX and infrastructure, and thus, credit offtake will also increase.
News Updated Date: 27-05-2022
Lendingkart Partners With Amazon India
Fintech start-up Lendingkart and e-commerce company Amazon India, two brilliant players in their fields, have initiated a partnership to support the sellers who dream to prosper digitally. Lendingkart will provide the registered sellers of Amazon India with collateral-free loan facilities that ensure a lower interest rate, flexible repayment options, and minimal formalities. Manish Bhatia, the president of Lendingkart, stated that the businesses are increasing in online platforms. It will be an excellent opportunity for Lendingkart to access high-growth segments collaborating with Amazon India. Lendingkart will have a chance to offer loans to 800k MSME sellers and more than 50 lakh MSME merchants on the platform of Amazon. The director of Amazon Pay India said that their prime goal is to benefit the sellers with hassle-free capital access. They hope this tie-up will be of great help for the growing businesses to prosper.
Updated Date: 25-02-2022
Lendingkart – Bank of Maharashtra Partnership to Offer Economical Credit to MSMEs
Lendingkart on Tuesday said that the fintech company and Bank of Maharashtra have partnered to offer small-ticket MSME loans. This partnership helps MSME borrowers to get easy access to economic credit. Powered by the ‘zero-touch,’ Lendingkart’s ‘2gthr‘ platform facilitates NBFCs and banks to onboard and disburse unsecured business loans up to ₹10 lakh to MSMEs in a hassle-free manner. Co-lenders can also underwrite business loan applications using the cash-flow-based assessment model ‘cred8’. To distribute MSME loans, Lendingkart’s origination platform ‘xlr8’ will distribute loans to MSME borrowers through multi-channel strategies. Harshvardhan Lunia, CEO, and co-founder, Lendingkart, said that the partnership would address the credit gap that exists in the financial service market. In addition, the partnership will help MSMEs to achieve higher growth in their respective sectors. A S Rajeev, managing director and CEO of Bank of Maharashtra, said that the partnership would make significant loans disbursement affordable. Bank of Maharashtra is now adopting digital channels that will pave the path for sustainable growth of the bank’s MSME credit portfolio. The partnership will also benefit customers and help achieve the common goal of contributing to the country’s GDP growth.
Updated Date: 07-02-2022
The 2022 Union Budget Must Support MSME Recovery
The Covid-19 pandemic has done some unprecedented damage to the economy. Although many sectors are coming back to normalcy, unfortunately, MSME is not one of them. This sector has high expectations from the Union budget 2022. The biggest challenge small businesses face today is the cash crunch and credit facility. RBI announced many liquidity measures to help the MSME sector, such as Targeted Long-Term Repo Updations Partial Credit Guarantee Scheme. In addition, there was a revision of the definition of MSME by RBI. All these steps look good on paper, but in reality, new-age fintech NBFCs can’t take advantage of these. The budget must make the path to pursue better implementation and have a look at transitions of schemes. Since Public Sector Banks (PSBs) are not considered a good option by many MSMEs players. Fintech players are a good option as they provide easy and affordable loans. The MSME sector hopes that with the right amount of thrust given by the government in Financial Year 23, they can get revived pretty soon.
Updated Date: 26-01-2022
Eclgs Is Expected To Receive An Extension Until March 2023
The Emergency Credit Line Guarantee Scheme will likely get an extension for another financial year. India suffered a lot during the first and the second wave of the coronavirus. The waves had a huge impact on MSMEs. With rising uncertainties of the Omicron variant, ECLGS extension is expected. Originally, the extension was supposed to end on the 31st March 2022 ECLGS was launched as a part of Aatmanirbhar Bharat Abhiyan. The scheme encompasses guaranteed additional working capital finance in the form of a term loan to MSMEs. The initial amount announced under the scheme was INR 3 trillion. The amount was then raised to INR 4.5 trillion in June. Finance minister Nirmala Sitharaman announced the raised package worth INR 6.29 trillion. A government official has informed the media house that the extension is under consideration with some modifications. INR 1.6 trillion is still available under the scheme. Hence, this ECGLS extension is expected to cover the distress caused by the lockdown and provide much-needed support to the MSMEs.
Updated Date: 05-01-2022
The Credit Demand Surges To A New High
The NBFCs or Non-Banking Finance Companies like IIFL, Edelweiss, and Shriram Transport which had been struggling constantly to conserve their capital recently have come up with a decision to open wallets. They are trying to lend as high as Rs 4 thousand crores per month. The country’s biggest lender and mortgagee HDFC Ltd has also witnessed a big increase in the demand for home loans which was quite similar to the pre-covid era. It was also seen that the new trend for various kinds of loans for purchasing construction equipment and trucks is seeing a new high in this pandemic times. Further, the rise in infrastructure spending by the governments as well as capital expenditure by some of the private companies is in demand too. Retail credit demand is also on track now.
Updated Date: 24-09-2021
Credit To Various Sector Affected By Pandemic And Lockdown
As per the Quarterly Basic Statistical Returns report by the RBI, credit growth to various sectors have seen a low due to the pandemic while few have seen growth as well. The credit to the industrial sector was in the negative zone while there was strong growth in personal loans and working capital loans in the form of cash credit which accounted for around one-thirds of total credit in 2020-21. This is a representation of the fact that businesses and livelihoods have been severely affected by the pandemic as well the lockdown as people have been struggling to gather means to survive. The data further showed that private sector banks recorded higher loan growth than public sector banks. The credit to the household sector also saw a boom by around 11% and thereby this sector’s total credit share also increased as compared to previous years. Credit to the private corporate sector has been seeing a decline for 6 quarters now. The banks in rural and semi-urban areas have recorded good credit growth over the last 4 quarters whereas the branches in metropolitan cities have taken a hit in terms of total credit share. This showcases the fact that the need for loans in time of the pandemic is being recognised in the rural areas as well.
Updated Date: 05-07-2021
Emergency Credit Line Guarantee Scheme (ECLGS) to receive ₹1.15 Lakh Cr boost
The Union Finance Ministry had started the ECLGS (Emergency Credit Line Guarantee Scheme) in May last year. The initiative began as part of the Prime Minister’s AatmaNirbhar Bharat package. According to Finance Minister Nirmala Sitharaman, ECLGS 1.0, 2.0 and 3.0 were able to disburse credit up to ₹2.69 lakh crore to 1.1 Cr from public banks. The Finance Minister, on Monday, announced an additional ₹1.15 Lakh cr for ECLGS. The initiative is meant to offer 100% credit guarantee to lenders that offer loans to businesses that suffered because of COVID 19, who are unable to meet their working capital requirements. The Government will also include private banks and NBFCs in the attempt. She also said that the existing admissible limit of credit guarantee on loans will be raised from 25%. The sector-wise details on the project are yet to be released. The Minister also announced that the Government will increase the cap of admissible credit guarantee from ₹3 lakh crore to ₹4.5 lakh crore. The Government also plans to launch other schemes with a view to assisting businesses. Countries like the UK see Aatmanirbhar Bharat as a scheme with great potential.
Updated Date: 01-07-2021
Stalin seeks moratorium on loan repayment for MSMEs
M.K Stalin, the Chief Minister of Tamil Nadu, pleaded to his counterparts via letters, asking them to join his efforts in asking the Central Government and Prime Minister Shri Narendra Modi to provide moratorium on loan repayment for the MSME sector that has been badly hit due to the Covid-19 pandemic.
The lockdown meant to suppress the spread of the pandemic has affected small businesses severely. He has written letters to the Chief Ministers of Jharkhand, Andhra Pradesh, Bihar, Delhi, Chhattisgarh, Kerala, Maharashtra, Punjab, Odisha, Rajasthan, Telangana, and West Bengal asking them in turn to write letters to the Minister of Finance and Chairman of RBI regarding the moratorium as he feels that a united front might ease things and increase the chances of success for the appeal.
Stalin pointed out the fact that when the central government announced lockdown last year, there was a decision to provide a moratorium on loan repayment for the MSME’s, but this year it hasn’t been followed although the state governments had to impose lockdown individually to curb the death toll due to the spread of the pandemic. He seeks a moratorium on loan repayment of upto INR 5 Crores for at least the first two quarters of 2021 to ensure that the MSME sector doesn’t collapse.
Updated Date: 14-06-2021
