Latest news with #Non-BankingFinancialCompanies
Economic Times
2 days ago
- Business
- Economic Times
NBFCs lead India's corporate bond market as private placements dominate: Jiraaf Bond Analyser
India's corporate bond market is experiencing significant growth, largely fueled by NBFCs due to their reliance on capital markets for funding. Banks, however, have become more cautious with bond issuances amid rising interest rates, favoring deposit mobilization. Private placements dominate debt issuance, offering efficiency, while regulators aim to boost public debt offerings for broader investor participation. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India's corporate bond market continues to witness robust growth, driven largely by the financial sector, with Non-Banking Financial Companies (NBFCs) leading the to data from the Jiraaf Bond Analyser platform, the financial sector accounts for the largest share of borrowings through capital markets, underlining its reliance on access to capital for onward both banks and NBFCs, diversifying funding sources is increasingly seen as a strategic tool to mitigate business have emerged as the dominant issuers of Non-PSU bonds, especially since 2019, posting a compound annual growth rate (CAGR) of 25% in bond issuances during this banks, NBFCs typically lack access to low-cost retail deposits and, therefore, depend heavily on capital markets to meet their funding post-Covid period further accelerated this trend, as NBFCs capitalised on the low-interest-rate environment to ramp up their borrowings through bond contrast, banks have shown more conservative borrowing patterns in recent years. Post-2022, bond issuances by banks through capital markets saw a notable decline, as the Reserve Bank of India (RBI) hiked repo rates by 250 basis points between May 2022 and February shift in the interest rate environment prompted banks to adopt a cautious approach, focusing more on deposit mobilisation rather than relying on capital market key insight from Jiraaf's data is the overwhelming dominance of the private placement route in India's listed bond 95% of listed bond issuances are executed via private placements, where debt securities are offered directly to a select group of institutional or high-net-worth route offers issuers faster execution, reduced regulatory burden, and lower disclosure requirements compared to public comparison, a public offer functions similarly to an IPO, inviting broader investor participation with higher compliance and disclosure norms mandated by SEBI. However, growth in public debt offerings remains muted, partly due to the procedural complexity and stringent regulatory this, SEBI has initiated steps to ease compliance and disclosure norms for public debt offers, aiming to promote broader participation in the corporate bond corporate bond market is poised for further evolution as regulators push for greater transparency and wider investor NBFCs are expected to remain the primary issuers, banks may gradually return to the market if interest rates the continued preference for private placements reflects both issuer convenience and investor demand for bespoke debt the government and regulators working to deepen and diversify India's debt market, platforms like Jiraaf are helping retail and institutional investors navigate opportunities in corporate bonds, facilitating wider adoption beyond traditional fixed deposits and mutual funds.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
New Indian Express
15-07-2025
- Business
- New Indian Express
How to Get an Instant Personal Loan in India
In recent years, the demand for instant personal loans in India has grown significantly, driven by the convenience of digital lending. These loans help individuals meet urgent financial requirements without the hassle of lengthy paperwork or physical visits to a bank. Instant personal loans are unsecured, which means borrowers do not need to pledge any assets as collateral. With the right approach and documentation, eligible applicants can receive funds directly into their bank accounts within a few hours. This blog explains how to get an instant personal loan in India. Understanding the Basics of an Instant Personal Loan An instant personal loan is a short-to-medium-term loan offered by banks, NBFCs (Non-Banking Financial Companies), and digital lending platforms. These loans typically come with flexible repayment periods and fixed interest rates. Since they are unsecured, they assess the applicant's eligibility primarily based on income, credit score, and repayment history. Steps to Apply for an Instant Personal Loan The steps to apply for an instant personal loan are as follows: Step 1: Check Your Eligibility Before applying, you should review the lender's eligibility criteria. Many financial institutions require the applicant to: ● Be an Indian citizen ● Be aged between 21 and 60 years ● Be salaried or self-employed with a stable income ● Have a minimum monthly income as specified by the lender ● Maintain a decent credit score (usually above 700) Meeting these eligibility criteria improves your chances of loan approval. Step 2: Keep Required Documents Ready To avoid delays, ensure that all necessary documents are in order. Commonly requested documents include: ● Identity proof (Aadhaar card, PAN card, passport, etc.) ● Address proof (utility bills, voter ID, driving licence) ● Income proof (salary slips, bank statements, ITRs) ● Employment proof or business details for self-employed applicants ● Recent passport-size photographs Some lenders allow you to upload scanned copies or take photos of documents through their app or website. Step 3: Compare Lenders and Offers Different lenders offer varying interest rates, processing fees, tenures, and loan amounts. Instead of choosing the first available offer, you should compare multiple options based on: ● Annual interest rate ● Processing fee and any hidden charges ● Prepayment or foreclosure terms ● Customer service support ● Disbursement time While comparing options, it's important to estimate your monthly repayment using a personal loan EMI calculator. This calculator helps you adjust the loan amount and tenure to find a loan option that fits your monthly budget.
Business Standard
11-07-2025
- Business
- Business Standard
VP Nandakumar Talks About How NBFCs Bridge India's Credit Gap
PNN New Delhi [India], July 11: The Indian banking sector has undergone a remarkable transformation with the rise of Non-Banking Financial Companies (NBFCs), which have redefined how credit is accessed and delivered across the country. Unlike traditional banks, NBFCs have stepped in to bridge the credit gap by offering flexible, tailored financial solutions to segments often overlooked by banks--especially small businesses, rural entrepreneurs, and individuals lacking formal credit histories. VP Nandakumar, Managing Director of Manappuram Finance, talks about how these dynamic institutions are powering a new era of opportunity with unprecedented growth and inclusion. The NBFC sector in India has experienced rapid growth and transformation, becoming a key player in the country's financial landscape. As of December 2024, the total credit extended by NBFCs stood at around ₹52 trillion and is projected to exceed ₹60 trillion by FY2026. By establishing branches in remote locations and leveraging digital platforms, NBFCs provide formal credit options to individuals and small businesses who are typically excluded from the mainstream banking system. Their ability to offer quick, tailored financial products--such as gold loans and MSME loans--caters specifically to the unique needs of small borrowers, enabling them to access funds more efficiently and with greater flexibility than conventional banks can offer. "Through their innovative, flexible lending models and customer-centric approach, NBFCs are bridging the persistent credit gap, providing timely and tailored financial solutions that empower small businesses, rural entrepreneurs, and individuals." Says VP Nandakumar. "In doing so, they are not only democratizing access to credit but also driving inclusive growth, fostering economic participation, and transforming lives across the country." He adds. Technology has also played an important part. By leveraging advanced technology and streamlined processes, NBFCs have made borrowing significantly easier and faster for first-time and small borrowers, who often face hurdles with traditional banks. The rapid growth of internet penetration in India rising from just 14% in 2014 to over 55% in 2025, with more than 900 million users projected this year has fundamentally transformed how NBFCs operate and serve customers. "This digital revolution, driven especially by rural growth, has enabled NBFCs to reach deeper into semi-urban and rural markets." Believes VP Nandakumar. With widespread access to affordable smartphones and high-speed mobile internet, NBFCs can now offer digital onboarding, instant loan approvals, and seamless customer service through apps and online platforms. This not only makes borrowing more convenient and accessible for people in remote areas but also allows NBFCs to use alternative data and technology-driven credit assessments, helping first-time borrowers and small businesses who lack formal credit histories. NBFCs in India have embraced technology at an unprecedented pace, fundamentally transforming how they operate and serve customers. The sector's digital shift has moved operations from paper-heavy, manual processes to seamless, AI-driven platforms that enable faster, more efficient, and more inclusive financial services. VP Nandakumar opines "Today, a smartphone and internet connection are often all it takes for customers even in remote areas to access loans, make payments, or complete onboarding in minutes, thanks to innovations like e-KYC, digital wallets, and UPI integrations." As a result, more people and enterprises are empowered to access formal credit, invest in growth, and participate actively in the formal economy, driving broader financial inclusion and economic development. The evolution of NBFCs marks a pivotal chapter in India's journey toward financial inclusion and economic growth. As the sector continues to grow, the impact of NBFCs extends far beyond lending; they are shaping a more inclusive, resilient, and dynamic future for the nation. With ongoing innovation and a relentless focus on customer needs, NBFCs are set to play an even greater role in realizing India's $5 trillion economic vision.
The Hindu
08-07-2025
- Business
- The Hindu
Increasing number of MSMEs in Coimbatore turn to money lenders and NBFCs for loans
The rising number of industries in Coimbatore district turning to money lenders in the unorganised sector and the Non-Banking Financial Companies (NBFCs) is a matter of concern, say industry owners and officials. 'We have raised this issue at the bankers' meeting. The Micro, Small and Medium-scale Enterprises (MSMEs), especially the micro and cottage enterprises, find it difficult to comply with the CIBIL score norm. These norms should be relaxed. Further, banks take time to sanction funds. These issues should be addressed,' said an official in Coimbatore. According to J. James, president of the Tamil Nadu Association of Cottage and Tiny Enterprises (TACT), while 30 % of the micro units take loans from nationalised banks, another 30 % get it from private banks. The remaining units go to NBFCs. If the unit is unable to repay on time, they run into serious issues and we are unable to help them,' he said. It is difficult for the micro units that do not work on job orders to maintain records. Hence, they are unable to comply with the CIBIL norms, he said. President of the Coimbatore Tiruppur District Cottage and Micro Enterprises' Association C. Sivakumar said the industries do not have to submit collaterals when they take loans from NBFCs. Further, the loans are sanctioned within a day. In the case of banks, it takes at least a month. However, the units pay 20 % to 28 % interest. 'It is not possible for any MSME unit to operate the unit after paying such high interests for loans. So, they start failing to pay the interest and get into trouble. There are several instances where the money lenders or NBFCs have take possession of the assets of the units that have failed to repay,' he said. Further, there are several middlemen who promise loans, taking over of default loans, etc and push the micro units into deeper troubles, he added. The banks need to be pro-active and support the micro industries more by relaxing the loan norms, they added.
Time Business News
06-07-2025
- Business
- Time Business News
How to Use MSME Certificate Download to Speed Up Your Term Loan?
Micro, Small, and Medium Enterprises (MSMEs) play a pivotal role in the economy, contributing significantly to employment, entrepreneurship, and overall growth. For these enterprises to thrive, access to financial services, such as term loans, is critical. A term loan provides businesses with the capital they need for expansion, machinery purchases, or other growth initiatives. However, a lot of MSME owners fail to realize that having their MSME certificate can expedite their loan application process. This article delves into the details of how the MSME certificate download can fast-track your term loan application and ensure smoother processing. The MSME certificate is a government-issued document that recognizes your business as a registered Micro, Small, or Medium Enterprise under the Udyam Registration system. Essentially, it serves as an identity proof for your business and gives you access to a wide range of benefits, including subsidies and priority loan approvals. When you officially register your business as an MSME, you receive a unique identification number and a digital certificate through the Udyam Registration portal. This is your ticket to availing various benefits from financial institutions and government schemes. The MSME certificate download ensures that you can quickly access and submit this document as needed during your term loan application. A term loan is a type of financial service where banks and Non-Banking Financial Companies (NBFCs) provide funds to businesses for a fixed tenure. The loan can be used for a variety of purposes, such as purchasing machinery, working capital, or growing operational capabilities. MSMEs often rely on term loans to bridge their financial needs, as these loans typically come with competitive interest rates and repayment terms suited to enterprises of all sizes. However, the traditional process of applying for term loans can be lengthy and cumbersome. Lenders require multiple documents, including proof of income, tax filings, business plans, and certifications. Often, MSME entrepreneurs face hurdles in obtaining term loans due to limited access to formal credit systems or due to gaps in documentation. This is where the MSME certificate download can act as a catalyst to streamline the application process Whether you are a micro-business struggling to finance operations or a medium enterprise eyeing market expansion, an MSME certification can provide an edge when applying for a term loan. Here's why: Lenders often prioritize loan applications from MSMEs, especially when the borrower provides a valid MSME certificate. The government mandates banks and financial institutions to extend credit facilities to registered MSMEs under favorable conditions. By downloading and presenting your MSME certificate, you position yourself as a preferred borrower. One of the major advantages offered to MSMEs is access to collateral-free loans , particularly under government schemes like the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) . , particularly under government schemes like the . The MSME certificate acts as proof of eligibility for such schemes, saving you from the stress of pledging assets as collateral. Registered MSMEs often qualify for lower interest rates on term loans. You can leverage your MSME certificate to avail interest subsidies offered under government schemes like Prime Minister's Employment Generation Program (PMEGP) or other sector-specific financial initiatives. Your MSME certificate serves as comprehensive proof of business identity, reducing the amount of supporting documentation required for loan approval. This simplifies the process and helps you bypass unnecessary hurdles. Lenders typically process MSME term loan applications faster due to government-backed assurances. Submitting your MSME certificate during the application ensures quicker background checks and validation processes, expediting your loan approval. By now, you understand the perks of using an MSME certificate to acquire term loans. But how do you actually download the MSME certificate and use it effectively? Here's a practical step-by-step guide: Before you can download your MSME certificate, your business must be registered on the Udyam Registration portal. Follow these steps to register: Visit the Udyam Registration Portal. Enter your Aadhaar number or GSTIN and personal details. Provide information about your business, such as turnover, investment in plant/machinery, and activity type (manufacturing, service, etc.). Upon successful submission, your MSME certificate will be generated. Once your registration is complete, you can download your certificate easily. Here's how to do it: Go to the Udyam Registration Portal. Click on the MSME certificate download option. Enter your unique Udyam Registration Number and registered mobile/email details. Authenticate using OTP sent to your mobile/email. Download the digital MSME certificate and save it for future use. Pro Tip: Always store the certificate in a secure location and keep it readily accessible in both soft and hard copies. Before applying for a term loan, research lenders offering MSME-friendly loan schemes. Major banks, NBFCs, and fintech platforms provide tailored term loans for MSMEs. Look for lenders who recognize the MSME certificate and offer: Competitive interest rates Flexible repayment terms Government-backed collateral-free loans Apart from presenting your MSME certificate, prepare other documents that lenders may require, such as: Business incorporation papers Tax filings and GST returns Bank account statements Business plan detailing how the term loan will be used Attach your MSME certificate to strengthen your application and showcase eligibility for MSME-specific schemes. Whether you're applying online or offline, make sure to include your MSME certificate along with the rest of the documentation. Most online term loan applications have an upload feature for official certifications—use it to share your MSME certificate download. Once your application is submitted, stay proactive in tracking its progress. Communicate with the lender regularly and provide any additional details they might require. Highlight your MSME registration benefits if there are any concerns about eligibility or loan approval. After securing the term loan, use the funds wisely according to the plan outlined in your application. Whether you intend to purchase new machinery or expand operations, efficient use of the loan will ensure profitable returns and smooth repayment. The MSME certificate download is critical for proving your business's eligibility for MSME-specific term loans and benefits. is critical for proving your business's eligibility for MSME-specific term loans and benefits. Registered MSMEs enjoy faster loan approvals, lower interest rates, and access to collateral-free loans. The process of downloading and using your MSME certificate is straightforward—once registered on the Udyam portal, you can quickly retrieve the certificate for loan submissions. Presenting your MSME certificate reduces documentation burdens and positions you as a preferred borrower. For any MSME owner looking to access funds through term loans, the MSME certificate is an invaluable asset. By leveraging the certificate, you can not only gain access to government-backed schemes but also enjoy a smoother, faster loan approval process. Whether you're a small manufacturer or a medium-sized service provider, your MSME certificate equips you to secure favorable lending terms and take your business to the next level. So, don't wait any longer—complete your Udyam registration today, download your MSME certificate, and open the doors to rapid financing opportunities! TIME BUSINESS NEWS
