The increasing number of Non-Performing Assets (NPAs) and fraudulent activities in banks and NBFCs today call for severe scrutiny of credit sanctions. This requires a strict evaluation of the applicant’s financial health to understand their position to service the debt. It involves assessing the loan applicant’s creditworthiness based on specific norms, standard procedures, and various […]
Although India’s credit card market remains underpenetrated compared to some developed economies such as the US and China or developing economies such as Brazil, there is a higher penetration opportunity in India. According to a 2020 report published on ResearchAndMarkets, the Indian credit card industry is expected to grow at a CAGR of more than […]
The throbbing heart of banks and NBFCs is the process of lending money. It drives their revenues and keeps the ship sailing. The value of loans in India increased 5.70 per cent on a year to year basis by June 4th 2021 (source: Reserve Bank of India). But the alarming rates of bad loans and […]
There may be several instances when a business owner is on the lookout for funds for their enterprise. Maybe they want to scale the business or fund an expensive machinery purchase, or take their products into a newer market. Whatever be the reason, the entrepreneur will need a loan to take the business to a […]
The coronavirus pandemic clearly echoed the global need to adopt digitally inclined ways of working, with brick and mortar offices shutting down and a remote working model being the new norm. In line with this, digital banking is also set to experience a steep rise with approximately 397 million Indian adults completely depending on ‘online-only’ […]
Mortgage loans and home loans, people often confuse the two. So, before we dive into digital bank statement analysis for mortgage lending, let’s shed some light on what it actually is. A home loan is a loan you take to either purchase a property or to construct it. The property has to be residential. The […]
For banks and Non-Banking Financial Companies (NBFCs), lending is one of the key business areas. Lending is perhaps their primary source of revenue and also the most profitable. In recent years, the lending process has also become a lot easier, resulting in a surge in the number of borrowers from all sectors and divisions. With […]
As per the Reserve Bank Of India’s FSR report released in January 2021, the GNPAs (Gross Non-Performing Assets) of the Scheduled Commercial Banks may be at the level of 13.5 percent by September 2021 under the baseline scenario. This clearly rings an alarm for all the lending institutions to make wise credit decisions by properly […]
Circular transactions are a type of fake transactions between companies that are part of a single group or under single ownership control. This practice has been proclaimed as a scam and a punishable crime by financial regulators in most countries, including India. Picture a scenario where Company A sells goods to Company B. Company B […]
Cash credit and overdraft accounts are handy financial instruments that help businesses meet their working capital requirements. They serve as short-term loan facilities and are offered by several financial institutions after a few primary credit checks. However, there is a popular misconception that both Cash Credit and Overdraft are the same, and people often use […]
