Dvara KGFS gives daily needs loans to rural customers to mitigate pandemic impact

CHENNAI: Chennai-based non-bank and micro-finance lender Dvara KGFS has been providing small-ticket loans to cater to the daily needs of people in remote, rural areas during the nationwide lockdown and after, using digital technology tools, two top executives told ET. Many rural households bore the brunt of the crippling lockdown from March which directly affected … Read more

Centre tells Supreme Court more time for loan moratorium not possible, court should not interfere

The RBI has filed an affidavit before Supreme Court in the loan moratorium case hearing and said that it’s not possible to give more time as relief for sectors hit by the coronavirus pandemic. Centre has told Supreme Court more relief time for loan moratorium cannot be given to sectors hit by Covid-19. (PTI) The … Read more

Loan moratorium: Will govt’s proposed waiver provide sufficient relief to borrowers?

The government’s proposed compound interest waiver is likely to help the individuals who opted for the moratorium, but a bigger concern arises out of the accumulated simple interest during the period. The Centre recently submitted a proposal to waive ‘interest on interest’ charges or compound interest on all retail and MSME loans up to Rs … Read more

Loan moratorium: How govt’s waiver proposal impacts you

The government recently submitted a proposal where it agreed to waive the compounded interest or ‘interest on interest’ charges for MSME and personal loans during the moratorium period. As per the Centre’s draft proposal, compound interest on fixed-term loans and equated monthly instalments (EMIs) will be waived — to the tune of Rs 2 crore … Read more

Struggling with high credit card debt after loan moratorium? 5 tips to reduce burden

The six-month loan moratorium which was announced by the government to provide relief to small and middle-income borrowers has been counterproductive for many individuals. A number of individual borrowers, especially those who own a credit card, have found themselves in a pool of debt after a period of temporary relief during the six-month moratorium. Credit … Read more

Did not opt for loan moratorium? Here is how you may be rewarded

A few days ago the central government submitted a proposal to waive compound interest or ‘interest on interest’ charges for the six-month loan moratorium period that was announced in view of the economic distress caused by coronavirus pandemic. The Centre’s proposal to waive the ‘interest on interest’ charges on loans for the moratorium period came … Read more

Loan moratorium case: SC defers hearing to October 13, seeks submission of all affidavits

The top court has also directed the Centre and RBI to place the report on record to give people an idea about what benefit is being extended to them.  The three-judge SC bench stressed on the core issue of eliminating interest on interest for borrowers during the moratorium period for six months. The Supreme Court … Read more

Risk-aversion will be self-defeating for banks: RBI Governor Shaktikanta Das

Mumbai: RBI Governor Shaktikanta Das on Thursday warned banks that being overly risk averse will be “self-defeating” and that lenders will not be able to “win their bread” if they do not carry out their basic task. Speaking at a webinar organised by financial daily Business Standard, Das said, rather than becoming averse to lending, … Read more

Banks to be cautious despite gold loan LTV relaxation: Report

Mumbai: Despite relaxation in loan-to-value (LTV) ratio on gold loans, banks are likely to be cautious in lending and will keep a buffer for any correction in the price of collaterals, says a report. Last week, the Reserve Bank of India (RBI) had increased the permissible LTV ratio for loans against pledge of gold ornaments … Read more

How to get loan with a low credit score

A credit score is one of the most important metrics that a lender uses to analyse an individual’s creditworthiness. A score of 750 or above is considered good and helpful in getting loans approved easily. However, maintaining a good credit score is not easy for many as it requires discipline, money management skills, and most … Read more