Latest news with #CRISIL
Time of India
5 days ago
- Automotive
- Time of India
What auto loan borrowers must know before it's too late?
The demand for auto loans has skyrocketed in the past few years due to increased aspiration for vehicle ownership, especially in the smaller towns. According to the CRISIL report, vehicle financing in India is expected to touch INR 9.4 lakh crore through FY26 fiscal at a CAGR of 15-16per cent for this fiscal and next. Additionally, data collected from a report states that while 60per cent of metropolitan car buyers avail of financing, around 75per cent consumers in smaller towns opt for car financing. This is how credit is increasingly being used to meet aspirations for mobility. However, as auto financing is booming, loan defaults are also adding up. TransUnion CIBIL has reported that delinquency rates for auto loan s on a 90+ days past due (DPD) basis stood at 0.6per cent in June 2024, presenting a very marginal improvement, indicating prevailing stress in the sector. Though the volume of auto loan origination has reduced by 3per cent year-on-year for the quarter ending September 2024, the amount disbursed saw a moderate growth of only 1per cent . This suggests that the borrowers are availing themselves of fewer loans but for bigger amounts, which may be risky. The real cost of defaulting on auto loans Rising auto loan defaults result in various implications. For the borrowers, defaulting can mean a chain of potential challenges, including poor credit scores, expensive borrowing, and court cases. The borrowers must be aware of such situations regarding their rights. In India, defaulting on a loan is not a criminal offence unless fraud is involved. The borrowers should be informed well in advance regarding the repossession of any asset. Under the SARFAESI Act , the Reserve Bank of India requires that lenders provide a 60-day notice to allow borrowers to correct their dues. Moreover, fair valuation of the repossessed asset and any surplus proceeds from its sale shall also go back to the borrower. Reduce your loan burden with these smart steps While understanding these rights is vital to prevent any default in the first place, proactive financial management should be adopted. Here are some proactive approaches that a borrower may consider: Opt for a larger down payment A higher down payment reduces the loan amount, resulting in lower EMIs and total interest payments. For instance, if the cost of your vehicle is ₹10 lakh, and you are ready to pay half of the price in advance, you require taking a loan of just ₹5 lakh. That, in the end, puts less pressure on your wallet. Choose a longer loan tenure When loan tenure is extended, the resulting monthly payments become easier to manage. However, borrowers must ensure to weigh it against the total interest paid during the lifetime of the loan. An increased tenure will probably lead to larger overall interest amounts, so checking your financial capacity before proceeding is advisable. Make additional EMI payments If possible, try paying more than the exact amount mentioned in the EMI terms. It reduces the loan tenure and interest paid overall. While seemingly minor, such additions over the years can save you a considerable amount. Roundup your payments Another effective strategy is to round up your monthly payments. For instance, if your payment is Rs 18,000, try paying ₹20,000 instead. The extra amount will go directly towards reducing the principal, helping you pay off the loan more quickly. Look for opportunities to make extra payments If you receive unexpected financial windfalls, like tax refunds or bonuses, consider allocating a portion of those funds towards making lump sum payments on your car loan. This can help lower the principal balance and reduce the total interest you'll pay in the long run. Increased defaults in auto loans indicate changing borrower behaviour and stress in the marketplace. For individuals, financial literacy and preparedness make the difference between default and a repayment plan. As accessibility for auto financing widens, responsibility must be coupled with aspiration to create seamless ownership journeys for borrowers.
Time of India
5 days ago
- Business
- Time of India
India-US trade deal: Energy, agriculture and tariffs; what will be in the 'very big' pact
US President Donald Trump and Prime Minister Narendra Modi (File Image) NEW DELHI: Trade talks between India and the US appear to be back on track, as President Donald Trump hinted that a "very big" agreement with India will be forthcoming soon. In a presser at the White House, Trump said, "Everybody wants to make a deal and have a part of it. Remember a few months ago, the press was saying, 'You really have anybody of any interest? Well, we just signed with China yesterday. We are having some great deals. We have one coming up, maybe with India. Very big one. Where we're going to open up India, in the China deal, we are starting to open up China." "We're not going to make deals with everybody. Some we are just going to send them a letter, say thank you very much. You are to pay 25, 35, 45 per cent. That's the easy way to do it, and my people don't want to do it that way. They want to do some of it, but they want to make more deals than I would do," he added. What impact will be on agriculture, tariff and energy in India? The trade relationship between India and the United States is expected to transform significantly, might lower tariffs, making US products more competitive in India, particularly in energy, agriculture, defence and aviation sectors. Given India's higher average tariffs compared to the US, the BTA could advantage American exporters, according to the Finance Ministry's Monthly Economic Review. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Rensa dina ådror och lev längre! Beauty Ideas Läs mer Undo The US implemented a 26% reciprocal tariff on Indian products in April 2025 but suspended it for 90 days from April 10, maintaining a 10% basic duty. Bilateral discussions have accelerated, showing substantial progress in digital trade, market access, customs procedures, and technical standards. A provisional agreement might be reached before July 9, as India seeks complete exemption from retaliatory tariffs. India-US trade reached $131.84 billion in FY25, establishing India as the US's primary trading partner. CRISIL suggests that while US imports to India might increase under the BTA, Indian exports may see limited benefits, as numerous key exports already enjoy duty-free access to the US market. India's growing energy requirements, especially for LNG, could create beneficial partnerships with US suppliers. CRISIL highlights LNG's advantages in price stability and long-term contract suitability over crude oil. Agricultural imports from the US might increase, including walnuts, pistachios and cranberries, although broader access remains disputed. The defence sector presents significant growth opportunities. Despite India's focus on domestic defence production, it remains a major arms importer. The US, as the world's leading arms exporter, has strengthened defence collaboration with India, including the INDUS-X programme initiated in 2023. Although India's trade surplus might face pressure, CRISIL identifies growth potential in labour-intensive industries like textiles, gems and jewellery, alongside high-value sectors such as smartphones and pharmaceuticals. The BTA negotiations encompass multiple sectors, with both nations considering it a crucial step towards enhanced economic partnership. Prime Minister Narendra Modi and Trump reached an agreement in February to finalise the initial phase of a bilateral trade deal by autumn 2025, with plans to increase trade to $500 billion by 2030, up from approximately £191 billion in 2024. India continues to progress in its negotiations with the European Union for a free trade agreement later this year, and has recently completed discussions for a FTA with the United Kingdom. These initiatives aim to diversify trade partnerships in anticipation of possible US policy changes under Trump. "The ball is now in the US court. India is not for any win-lose trade partnership," stated Ram Singh, who leads the Indian Institute of Foreign Trade, a government-supported research organisation. Data shows India's exports to the US increased to $17.25 billion during April-May, compared to $14.17 billion in the previous year, indicating that the US tariff increases averaging 10% in early April had minimal effect. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hans India
6 days ago
- Business
- Hans India
India's trade surplus with US stands at $41.18 bn
The imminent bilateral trade agreements (BTA) with the US are likely to reduce India's goods trade surplus with that country, according to a research report by CRISIL. During the financial year 2024-25, India's trade surplus with the US stood at $41.18 billion, according to data of the Indian government. The report said after completion of trade pact, India will be able to import more energy, certain agriculture products and defence equipment among others. Although the US is India's largest export partner, there is scope to increase exports further in areas like smartphones, pharmaceutical products and labour-intensive exports such as textiles, gems and jewellery, the report said. The US announced reciprocal tariffs on India and a host of other nations in April 2025, and then paused the increase for 90 days from April 10 to negotiate trade deals with these countries. As India negotiates a trade deal with the US in the form of BTA, the first tranche is expected to be completed by September this year. The report said that India should be prepared to see more imports from the US under BTA.
Fibre2Fashion
6 days ago
- Business
- Fibre2Fashion
Lower US tariffs on textile items can make India competitive: CRISIL
The US-India bilateral trade agreement (BTA) under negotiation will likely lead to reduction in India's goods trade surplus with the United States, and India would be able to import more energy products, certain agriculture products and defence equipment, among others, from the latter, according to CRISIL. Although the United States is India's largest export partner, there is scope to increase exports further in areas like smartphones, certain pharma products and labour-intensive exports like textiles and gems and jewellery, the S&P Global company said in a note. As the first tranche of the proposed BTA is targeted to be completed by the fall of 2025, India should be prepared to see more imports from the United States as India's tariffs are much higher than those of the United States and bringing these down would be advantageous to US exporters. The US-India bilateral trade agreement (BTA) under negotiation will likely lead to reduction in India's goods trade surplus with the US, and India would be able to import more energy products, certain agriculture products and defence equipment, among others, from the latter, according to CRISIL. Lower tariffs under the BTA can help India compete with other major textile exporters. CRISIL does foresee some scope for India to increase its exports to the United States. Textile products are among the major exports to the United States that attract tariffs. Lower tariffs under the BTA can help India compete with other major textile exporters like Bangladesh, China and Vietnam. While some textile products like toilet linen, kitchen linen and bed linen already have a considerable market share (which should get bolstered by the tariff reduction), the market penetration is low for products in the readymade garment (RMG) space, CRISIL noted. These stand to gain with a tariff reduction. 'Synergies in textile trade can be enhanced from a zero or reduced duty on India's import of cotton from the US, particularly as India's cotton production is declining. This can help cater to the rising demand for RMG from the US, provided the duties on such imports are reduced,' it added. Fibre2Fashion News Desk (DS)
The Print
6 days ago
- Business
- The Print
BTA with US likely to reduce India's goods trade surplus with US: CRISIL
The report said after completion of trade pact, India will be able to import more energy, certain agriculture products and defence equipment among others. During the financial year 2024-25, India's trade surplus with the US stood at USD 41.18 billion, according to data of the Indian government. Kolkata, Jun 25 (PTI) The imminent bilateral trade agreements (BTA) with the US is likely to reduce India's goods trade surplus with that country, according to a research report by CRISIL. Although the US is India's largest export partner, there is scope to increase exports further in areas like smartphones, pharmaceutical products and labour-intensive exports such as textiles, gems and jewellery, the report said. The US announced reciprocal tariffs on India and a host of other nations in April 2025, and then paused the increase for 90 days from April 10 to negotiate trade deals with these countries. As India negotiates a trade deal with the US in the form of BTA, the first tranche is expected to be completed by September this year. The report said that India should be prepared to see more imports from the US under BTA. This is because India's tariffs are much higher than the US and bringing these down would benefit the exporters in the US. India's exports, however, are unlikely to see a major spike because the focus of the US administration is to reduce the trade deficit with India and most of the top exports are already duty-free. The US is not only the world's largest economy, but also the world's largest importer, according to the report. PTI dc RG This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
