Delinquencies in India increased by 44% among personal loan borrowers between Dec ’23 and June ’24. This highlights the importance of accurate and informed decision-making during loan approvals and, more importantly, the need to rethink how lenders approach cash flow analysis of individual and commercial borrowers. Although conventional lenders in India, including banks, typically rely […]
4 Major Challenges Faced by Fintech Companies in Document-heavy Lending
Despite showing promising signs of revitalising Indian lending, the challenges faced by fintech companies are by no means insignificant. These generally include a combination of a complex regulatory framework, evolving operational guidelines by the Reserve Bank of India (RBI), and most importantly, document-heavy processes. From Know Your Customer (KYC) documents and income proofs to property […]
The Lender’s Guide to Corporate Loan Document Hierarchy: Critical Papers for Approval Decisions
India’s corporate credit ecosystem has seen remarkable growth in FY 2024–2025. Here are a few figures that support this trend: The total outstanding bank credit to business (including industry and services) increased to ₹82.73 lakh crore in March 2024, with a 16.3% year-on-year growth. Corporate loans to large enterprises grew by 7%. The retail loan […]
Why Is Money Trail Detection Important in Preventing Economic Offences?
Economic offences like money laundering, shell companies, and tax evasion have escalated in India. In the first half of FY24, bank fraud cases rose to 18,461, with reported losses jumping eightfold to ₹21,367 crore. These financial crimes undermine public trust and destabilise the economy. The Enforcement Directorate (ED) responded by attaching assets worth ₹1.45 lakh […]
RBI’s New ͏Pri͏ority Sector ͏Lend͏ing Guideline͏s: Expandi͏ng Credit Horizons
Access to credit is a critical driver of economic growth, yet not all sectors receive adequate funding. As of 2024, the total ba͏nk credit in͏ India s͏to͏od at over ₹150 ͏lakh͏ crore, yet͏ a signif͏ic͏ant portio͏n ͏of key͏ sectors like agriculture, MSMEs,͏ and re͏newable ene͏r͏gy con͏tinue to strugg͏le for adequa͏te fu͏n͏ding. With M͏SMEs co͏ntributing 30% […]
Perpetual Credit Lines: Why Is RBI Raising Concerns
India’s lending landscape has evolved rapidly in the last decade, driven by the onset of non-banking financial companies (NBFCs) and Fintech startups and the insurgence of advanced technologies in different areas of the lending cycle. Between 2005 and 2020, the asset size of NBFCs grew at an impressive CAGR of around 18.7%, fueled by the […]
Best Practices for Lenders to Prevent Money Laundering
The Reserve Bank of India (RBI) has continually strengthened its laws against money laundering, levying significant fines on non-complaint banks and financial institutions. However, laundering continues to be a major challenge for India’s financial system, with the nation reportedly losing close to $18 billion each year to such activities. Digital financial growth, especially in the […]
Scam Alert: 5 Ways Lenders Can Protect Themselves from Sophisticated Scammers
According to a recent Reserve Bank of India (RBI) report, bank fraud cases increased by 27% year-on-year in FY 2024-25. Between April and September 2024, the Indian police registered 18,461 cases, amounting to INR 21,367 crore, a significant rise from the 14,480 cases. Lending money carries inherent risks, which are amplified by swindlers. Despite stringent […]
Uncovering Hidden Risks: The Importance of Forensic Audits for Lenders
The increased complexity of financial fraud necessitates forensic audits. Instances like ₹7,800-crore Satyam scam and the ₹13,000-crore PNB fraud show how traditional audit methodologies fail to detect sophisticated deceptions. RBI data shows that bank frauds aggregated to ₹30,252 crore in FY 2022-23, and roughly ₹28,792 crore involved are loan-related. As businesses grow more sophisticated, so […]
Unpacking RBI’s Unified Lending Interface: What Lenders Need to Know
The Reserve Bank of India’s (RBI) Unified Lending Interface (ULI) is a groundbreaking technological innovation poised to transform the Indian lending sector. The digital platform aims to facilitate the loan application process by providing lenders with quick access to comprehensive financial data through standardised APIs. This way, ULI reduces paperwork, speeds up approvals, and improves […]