Latest news with #NBFCs
Time of India
8 hours ago
- Business
- Time of India
New auto loans beat housing in Q1
MUMBAI: In an unusual turn, Indian banks extended more credit for automobile purchases than for housing in the first quarter of FY26, highlighting a shift in consumer demand and lending patterns. Tired of too many ads? go ad free now According to RBI data on the sectoral deployment of bank credit, banks added Rs 2.4 lakh crore to their loan books between April and June. Of this, nearly two-thirds came from home loans, vehicle loans and loans against gold jewellery. Housing finance which has traditionally been the main driver of retail lending saw a marked slowdown partly due to HDFC Bank growing mortgages slower than industry on its large base due to competition. At the end of June, outstanding home loans stood at Rs 30.6 lakh crore, making up 16.6% of all bank credit. While this represents a year-on-year growth of 9.6%, lending during the quarter rose by just 1.9% or Rs 56,643 crore, slower than vehicle finance. Auto loans grew Rs 29,492 crore during the quarter, taking the total to Rs 6.52 lakh crore. That was a 4.7% rise in three months and 10.8% higher than a year earlier, lifting the segment's share in bank credit to 3.5%. The overall growth in bank credit was modest, with outstanding loans growing just 1.3% in the quarter, from Rs 182.44 lakh crore to Rs 184.83 lakh crore. A key drag was the services sector, where loans declined 0.6% or Rs 30,631 crore, pulled down by a 2.4% contraction in credit to non-banking financial companies. Lending to NBFCs fell to Rs 15.96 lakh crore. Gold-backed loans, however, saw the sharpest rise, growing 28.9% to Rs 2.77 lakh crore. Tired of too many ads? go ad free now The increase was driven by reclassification of agri loans secured against gold into the gold loan category. This trend could change in second quarter with RBI revising norms again. Lending to agriculture expanded 6.8% year on year, lower than the 17.4% growth seen in the same period last year. Industrial credit grew 5.5%, compared to 7.7% a year earlier, though sectors such as engineering, construction and textiles showed improved momentum. Personal loans, which include unsecured lending and credit card dues, continued to grow but at a slower clip. Growth in the segment decelerated to 14.7% from 16.6% a year earlier, amid a moderation in vehicle loans and credit card outstandings.
&w=3840&q=100)
Business Standard
20 hours ago
- Business
- Business Standard
FD rates up to 8.95%: Where to park money as markets reel from Trump tariff
The stock market traded in the red on Thursday as global jitters intensified following US President Donald Trump's announcement of a 25 per cent tariff on Indian goods. The move triggered risk-off sentiment, adding pressure to an already volatile market. Amid this uncertainty, fixed deposits (FDs) continue to be seen as a steady option for conservative savers, despite recent rate cuts by banks. The Reserve Bank of India has lowered the repo rate by 100 basis points across three consecutive policy meetings in 2025. Most banks have since reduced their deposit and lending rates. Even so, many savers remain drawn to the safety and predictability of FDs. 'Even with interest rates softening, fixed deposits remain a dependable choice for conservative savers. Their biggest strength lies in capital safety, predictable returns, and quick liquidity, regardless of market performance,' said Adhil Shetty, CEO, He added, 'With global cues like tariff threats unsettling investors, FDs offer the kind of stability many seek in turbulent times.' Here's a look at some of the highest FD rates currently on offer across small finance banks, private sector banks, and non-banking financial companies (NBFCs), based on data from PaisaBazaar as of July 30, 2025. Small finance banks Slice Small Finance Bank offers the highest slab return among its peers—8.50 per cent—for a very narrow tenure window between 18 months 1 day and 18 months 2 days. Its 3-year deposit offers 8.25 per cent, while the 5-year option is at 7.75 per cent. The 1-year FD fetches a lower 6.75 per cent. The sharp jump in rates for a specific slab makes it appealing for short-term investors willing to lock in funds precisely. Jana Small Finance Bank provides a top rate of 8.20 per cent for 5-year FDs. It also offers 7.50 per cent for a 1-year tenure and 7.75 per cent for 3 years, making it a consistent option for those seeking high returns across different durations. Suryoday Small Finance Bank matches this trend with an 8.40 per cent return on 5-year FDs. Its 3-year rate stands at 8.15 per cent, while both 1-year and 5-year deposits earn 7.50 per cent and 8.40 per cent, respectively. The uniformity in rates across tenures makes it a solid pick for medium to long-term savers. Unity Small Finance Bank offers 7.75 per cent for a 1001-day deposit. While the 1-year rate is relatively low at 6.50 per cent, its 3-year and 5-year options offer a consistent 7.25 per cent, appealing to those seeking balance across terms. Utkarsh Small Finance Bank gives a peak return of 7.65 per cent for FDs maturing in 2 to 3 years. The 1-year rate is lower at 6.00 per cent, but both the 3-year and 5-year options offer 7.65 and 7.25 per cent, respectively, providing mid-range consistency. Equitas Small Finance Bank offers a peak of 7.60 per cent for a tenure of 888 days. Other durations offer slightly lower rates—7.25 per cent for both 1-year and 3-year terms, and 7.00 per cent for a 5-year FD. It suits those looking for moderate returns over shorter horizons. ESAF Small Finance Bank also offers 7.60 per cent but only for a specific 444-day slab. Its 1-year rate is much lower at 4.75 per cent, though it rises to 6.00 per cent for 3-year FDs and 5.75 per cent for 5 years. Despite the appealing slab rate, the overall offering is less competitive over regular tenures. Ujjivan Small Finance Bank's highest rate is 7.60 per cent for a 2-year deposit. It offers 7.50 per cent for 1 year and 7.20 per cent for both 3- and 5-year tenures, placing it just below top competitors for longer-term savings. Private sector banks Bandhan Bank gives a peak return of 7.40 per cent for deposits between 2 years and less than 3 years. It offers 7.25 per cent for both 1-year and 3-year deposits, but its 5-year FD earns only 5.85 per cent, making it a stronger option for short- to mid-term savers. CSB Bank also tops out at 7.40 per cent, available for a 13-month slab. However, its standard 1-year deposit earns just 5.00 per cent, and the 3- and 5-year tenures yield 5.75 per cent, which places it on the lower end among private banks. DCB Bank offers 7.40 per cent for a very narrow slab of 27 to 28 months. For 1-, 3-, and 5-year FDs, it maintains a flat 7.00 per cent, offering consistency rather than peak yields. SBM Bank India offers its highest rate of 7.60 per cent for terms slightly above 18 months but below 2 years and 3 days. Its 1-year and 3-year deposits both yield 7.05 per cent, while the 5-year FD stands at 7.50 per cent. It presents a relatively stable return profile across tenures. Corporate fixed deposits Muthoot Capital Services, rated A+ by CRISIL, offers the highest return among corporate FDs at 8.95 per cent for a 36-month term. It also provides 7.90 per cent for a 1-year deposit and 8.50 per cent for 5 years. Senior citizens receive an additional 0.25 per cent. While returns are strong, the lower credit rating compared to AAA peers suggests slightly higher risk. Manipal Housing Finance Syndicate, with an ACUITE A rating, offers 8.25 per cent across 1-, 2-, and 3-year tenures, dipping to 7.75 per cent for 5 years. It gives a 0.25 per cent boost to senior citizens and is suited to short- to medium-term savers comfortable with moderate risk. Can Fin Homes, rated AAA by ICRA, offers 8.00 per cent for a 3-year FD. Its 1-year and 5-year rates are lower at 6.50 and 6.75 per cent, respectively. With senior citizen benefits of 0.25 to 0.50 per cent, it appeals to conservative investors focused on credit quality. Shriram Finance, with a rating of AA+ from both ICRA and India Ratings, offers a top FD rate of 7.72 per cent for 3-year, 50-month (Jubilee), and 5-year terms. The 1-year rate stands at 7.11 per cent. It offers additional incentives—0.50 per cent for senior citizens, 0.15 per cent for renewal, and 0.05 per cent for women depositors. These are monthly rest FDs, making them attractive for regular income seekers. Credit ratings on corporate FDs When evaluating company FDs, investors often refer to credit ratings issued by agencies such as CRISIL, ICRA, and CARE. These indicate the issuer's ability to repay. • AAA or AA suggests low risk and strong repayment capacity • A or BBB indicates moderate risk with some market sensitivity • BB or lower denotes higher risk and greater likelihood of default While ratings offer a useful reference point, it's still worth checking the company's financials and reputation before investing.
Indian Express
a day ago
- Business
- Indian Express
Denied a loan for missing ITR? Here are 8 options to explore
Loan applications often require multiple documents, and one of the most important is your income tax return (ITR). Lenders use it to verify income and assess your ability to repay, especially for high-value or unsecured loans where creditworthiness matters most. But, many borrowers may not have an ITR, such as first-time earners, homemakers, freelancers, returning NRIs, those in cash-based jobs, people who missed the filing deadline, or dependents without taxable income. While this can make borrowing harder, it isn't a dead end. Lenders may still consider your credit score, bank statements, or existing relationships. Here are some practical alternatives to explore if you don't have an ITR. Offer alternative income proofs In the absence of an ITR, lenders usually accept other alternatives like salary slips, bank statements, rent receipts, or utility bills to gauge financial stability. Self-employed individuals can share GST certificates, turnover records, or invoices to prove income. Apply for a personal loan Personal loans don't need collateral, so if you have a good credit score and proof of steady income in your bank account, you may still get approved without an ITR. Some banks also offer pre-approved loans to existing customers, so check if you're eligible. Apply for a smaller loan If documentation is a hurdle, consider applying for a smaller loan amount. Lenders are more likely to approve lower-value loans with minimal paperwork, as the associated risk is lower. These are typically processed faster and can be repaid more easily, making them a practical stopgap solution. Add a co-applicant Applying jointly with a co-applicant who has a steady income and valid ITR can significantly improve your chances. Lenders consider the combined income of both applicants, improving your loan eligibility and access to a larger amount. A co-applicant also helps present a stronger repayment profile, which is particularly useful for self-employed or non-salaried applicants. Leverage existing banking relationships If you've had a long-standing relationship with your bank, reach out to your relationship manager. Banks are often more accommodating with known customers who maintain a healthy account. A strong credit history and consistent transactions in your account can help offset the absence of an ITR. Explore gold loans Gold loans are among the easiest secured loan options and do not always require an ITR, especially for smaller amounts. Lenders evaluate the purity and value of your gold and offer a loan based on that. They may ask for basic KYC documents and proof of address, but the process is generally quick and flexible. For higher loan amounts, however, documentation requirements may be more stringent. Consider special lending schemes Some lenders offer tailored schemes for specific borrower profiles, like self-employed individuals or gig workers who may not always file ITRs. Check with banks or NBFCs about such schemes, especially if you can provide stable income proof through bank transactions or alternate documentation. Consider P2P lending platforms Peer-to-peer (P2P) lending platforms connect borrowers directly with lenders and often have more flexible documentation requirements. They may not always insist on an ITR, especially if other proof of repayment capacity is available. However, ensure the platform is RBI-registered and understand the interest rates and risks involved before borrowing. Not having an ITR doesn't shut the door on borrowing. With the right documents, a good credit score, and a steady income trail, lenders may still consider your application. Explore alternatives smartly and be aware of your options.
Business Upturn
a day ago
- Business
- Business Upturn
US tariffs rattle India's ‘safe haven' tag; market may see more FII outflows, warns CLSA
This near-term uncertainty could further impact an already underperforming though expensive Indian equity market, said CLSA in its latest India strategy note, flagging a fresh wave of global risk aversion after the US President announced a 25% tariff on Indian imports, along with penalties tied to India's trade with Russia. The brokerage warned that the move weakens India's perception as a geopolitical safe haven and could weigh heavily on foreign institutional investor (FII) flows, especially at a time when valuations remain elevated and domestic earnings visibility is patchy. Advertisement India's safe haven status under threat While India has long benefited from its strategic balancing act between the US and Russia, CLSA analysts Vikash Jain and Aditya Jaiswal noted that the aggressive tariff and penalty regime may make it harder for India to maintain that position. 'These comments from the US President raise questions on India's ability to continue benefiting from its unique geopolitical standing. At a time when Indian equities trade among the world's most expensive, this could make it more difficult to attract FII inflow,' CLSA noted. Direct and indirect impact on markets The direct impact of the US tariff move could hit sectors like pharma, electronics, auto ancillaries, cables, and tiles, where the US sets benchmark pricing. More importantly, the indirect impact of capital outflows and global growth fears is expected to weigh heavily on SMIDs and domestic cyclical sectors like NBFCs, real estate, and industrials. CLSA also noted that the Indian rupee's depreciation may offer some cushion to IT stocks, which could outperform due to now more reasonable valuations. Export exposure and sector implications India's goods exports to the US total around $87 billion, or ~2.5% of GDP. The new 25% tariff, along with the penalties for India's continued energy and military trade with Russia, could impact India's key export-driven sectors. CLSA flagged that textiles, agriculture, chemicals, and engineering goods may face pressure in the near term. Volatility to rise, easing may be needed With capital flows likely to soften and domestic demand still lukewarm, CLSA believes the RBI may need to pursue monetary easing to buffer the impact on growth. The narrowing US trade deficit, rising dollar strength, and delayed Fed cuts could all trigger more volatility in global and Indian markets, the note said.
Time of India
2 days ago
- Business
- Time of India
Account aggregator ecosystem facilitates loans worth Rs 1.6 lakh crore in FY25
Per a report by Sahamati—a bunch of entities within the AA ecosystem—titled 'Credit Reimagined: Account Aggregator (AA) Impact H2 FY25,' NBFCs led the usage of AA for lending, accounting for 60% of the overall lending in FY25. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The Account Aggregator (AA) ecosystem facilitated loans worth more than Rs 1.6 lakh crore in the financial year 2025 , spanning 1.89 crore loan accounts, according to a report by Sahamati Sahamati—a collective of entities within the AA ecosystem—published the report titled 'Credit Reimagined: Account Aggregator (AA) Impact H2 FY25,' which collected the data from 12 lending institutions currently using the AA AA system, regulated by the Reserve Bank of India (RBI), enables individuals to securely share their financial data with service providers through consent. The companies that provide these services include Perfios-backed Anumati, CAMSfinserv, Setu AA and Finvu, among of June this year, close to 24.8 crore consent requests have been made through the AA system, said the report. The report further said that an estimated 12.73 crore Indians used the facility.'FY25 marks a turning point for the AA framework, moving from early-stage deployment to meaningful, large-scale adoption. Lenders are increasingly embedding AA into their core credit workflows—not just during onboarding, but throughout the entire credit lifecycle,' said Shalini Gupta, chief policy and advocacy officer at added, 'The next chapter for the ecosystem will be defined by how seamlessly AAs integrate across use cases, customer segments, and sectors, enabling more informed, consent-driven decision-making in financial services.'This comes as AAs, such as Protean eGov Technologies , will be equipped to offer access to the Aadhaar rails through a secured channel once the concerned ministry clears the proposal from these private companies, as reported by ET. Public sector banks reported the lowest contribution, accounting for less than 1%, said the financial institutions (NBFCs) lead the usage of AA for lending, accounting for 60% of the overall lending landscape in report further said that the ecosystem is no longer in pilot mode. The ecosystem, to move from scale to depth, needs to focus on adding on-ground staff for secured and MSME credit , requires proper monitoring of repayments, and needs diversification into areas like hyper-personalised financial products, the report added.
