1. A personal loan is given by a bank or an NBFC to an individual to meet any personal needs like funding a marriage, home renovation, vacation etc. 2. Since personal loans are not secured against any asset, the lender cannot recover the funds by selling anything. Hence, the rate of interest is higher than other secured loans. 3. Banks and NBFCs have set strict eligibility criteria concerning income, credit and employment history and past repayment capacity for availing personal loans. 4. A loan processing fee has to be paid besides interest and lenders can charge a prepayment penalty. 5. Sometimes, based on the relationship with the lender and financial history, the customer is given the facility of a pre-approved loan limit. (This content is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.) … [Read more...] about What are personal loans?
By Ateesh Tankha In a February 24 document, ‘Assessment of the Progress of Digitisation from Cash to Electronic’, the Reserve Bank of India (RBI) noted that ‘cash still rules but it is increasingly seen as a way to store value as an economic asset ratherthan to make payments’. This, despite the fact that the report candidly admits that there is no method to measure cash payments, while the great progress made by digital payments can be measured accurately. Encouraged by the reduction in the volume of notes in circulation, it asserts that RBI’s ‘endeavour is to make digital (payments) a divine experience to the users’. One may choose to ignore this Panglossian claim as inspired hyperbole. But what if RBI governor Shaktikanta Das himself makes a set of pronouncements on the future of banking and fintech? Surely, these need to be analysed carefully to assure ourselves that any future regulatory framework balances the opportunities resulting … [Read more...] about View: The problems with Shaktikanta Das’ ‘vision’ of financial sector’s future
Fintech startup BharatPe has raised $75 million led by hedge fund Coatue Management and Palo Alto-based fintech investor Ribbit Capital, as it looks to fund its non-banking financial company (NBFC) arm that is awaiting licence approval from the Reserve Bank of India.The latest funding round has nearly doubled BharatPe’s valuation to $425 million. New investor Amplo, a US-based venture capital firm, and existing investors Insight Partners and Steadview Capital also participated in the Series C round. This brings the total capital raised by the one-and-a-half year-old startup to $143 million across four funding rounds. BharatPe said one reason for the latest fundraising was to invest around $70 million in equity capital in its NBFC arm Resilient Capital, and leverage that by 3-4 times to raise a pool of around $300 million to service loans for merchants on its platform. It will use the NBFC to offer lines of credit to its base of small merchants. “We have already disbursed Rs … [Read more...] about BharatPe gets $75M from Coatue, Ribbit
Mumbai: FCA India, which has made a mark with Jeep Compass, is bringing in the iconic Wrangler Rubicon by the end of March even as it is working on rolling out two-three more Jeep models from its Ranjangaon facility in Pune next year. Since the launch in July 2017, FCA has sold more than 50,000 units of Jeep Compass in the domestic market, and exported over 17,000 units to key right-hand drive markets globally. "We have received huge bookings for the Rubicon. In fact, we are already sold out for a few months. We are bringing in the iconic car to the country by the end of March as we see a good market," FCA India President and Managing Director Partha Datta told in an interview. Apart from Compass, Wrangler Unlimited is the most successful model for the company, accounting for almost 67 per cent of the CBU (completely built unit or imported) volume here since launch in August 2016, he said. The other CBUs sold by the company here are Wrangler and Grand Cherokee. Rubicon, which … [Read more...] about FCA to ride in Rubicon next month, to assemble 2-3 new Jeep models from 2021
SATYA MicroCapital, one of India’s fastest growing MFI, opened its first branch in the country’s exuberant state of Gujarat, taking the total number of branches to 135 across 21 states & union territories. The branch situated at Chandkheda in city of Ahmedabad, was inaugurated by SATYA MicroCapital’s VP, Individual Micro Loan, Mr. Ravi Kumar on 30th January 2020. … [Read more...] about SATYA MicroCapital Limited opens its first branch in Gujarat