#RBI moratorium

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COVID-19 has affected the finances of people all over the globe, whether salaried or self-employed professionals, everyone is suffering in this financial crunch. In these crises, it’s difficult for all of us to pay loans. Thus, RBI has come up with a relaxation period to maintain cash flow in the middle-class people.

[dhanlabh]

RBI Guidelines on Collateral-free Education Loan

The Reserve Bank of India (RBI) has provided guidelines to banks regarding collateral-free education loans, aimed at making higher education accessible to deserving students without the burden of providing collateral. Check some of the most important RBI Guidelines on collateral free education loans below:

Loan Amount: Banks are directed to offer collateral-free loans up to INR 7.5 lakhs for studies.

Eligibility Criteria: Students who secure admission into recognised courses in India or abroad are eligible. These loans are available for undergraduate, postgraduate, and professional courses.

Coverage: The loan usually covers tuition fees, examination fees, library/laboratory fees, caution deposits, and travel expenses.

Security Requirements: For loans up to a specified amount i.e. INR 7.5 lakhs, banks generally do not require collateral. However, for higher amounts, banks may ask for collateral, depending on the policies and risk assessment.

Interest Rates: Interest rates on education loans are competitive and may vary based on the lender's internal policies, the loan amount, and the applicant's credit profile.

Repayment: Repayment starts after the completion of the course and the moratorium period is course duration plus 1 year or 6 months after getting a job (whichever is earlier).

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Enhanced productivity and profitability in financial institutions through digital signage

Advertising in financial institutions is not just about the numbers or schemes. It’s the promise of a better present and a secured future — owning a home and/or a car, getting the best education and more. And one needs captivating imagery to pique customers’ emotions. Ergo, digital signage in retail banking is quickly replacing static campaigns to enhance customers’ experience, from the enquiry counter right up to the back office.

A study suggests that the dwell time for attentive viewing is the maximum at banks. On an average, customers spend 15 minutes during a visit, and 30% of this span goes into absorbing any information being displayed. Institutions can utilise this to inform, promote, educate, sell, or enhance the banking experience. Since Digital Signage Solutions (DSS) can provide 47.7% effectiveness in creating brand awareness, nine out of 10 banks admit that digital signage is important for their in-branch marketing tactics.

Here’s what makes it the most-deployed ROI-driven solution for marketing, supporting CRM and sales teams, and drawing customers’ attention:

400% more views than static exposure

83% recall value

45% boost in customer satisfaction

35% reduction in waiting time

Utilise any area as a spot of communication

Digital signage presents the opportunity for stellar points of strategy, content and means — still, dynamic and videos. So, there’s no need for prehistoric USB-driven static content. To display these, it can practically turn any area of a brick-and-mortar institution, whether the window, entry way, aisle or billing desk, into a spot of communication. An establishment can build intrigue and advertise digitally to existing and potential customers. For instance, since Wauly Digital Signage Solution enables you to manage 1 to ‘n’ no. of screens, Axis Bank reaches out to customers at 1,000+ branches in 5 states of India simultaneously.

Establish brand identity

A financial institution can create its identity through brand purpose and affinity by displaying its brand campaigns or corporate/CSR initiatives at different points. Videos can project product relevance and make information readily available whether about deposits, UPI or mobile apps. What’s more, informing them about critical and ever-evolving information such as Government/RBI advisory, financial facts or safe banking tips can be a great value addition for your customers. Wauly’s Occupancy Reporter can count visitors at a bank’s outlets and display occupancy status so that you can work on your targeted advertising accordingly.

Interactional opportunities

DSS is a technologically up-scaled and convenient method that lets you upgrade information in real time through CMS and update content instantly by inbuilt software. It can keep branch visitors engaged with ads, news or investment tips as they stand in queues, thereby reducing perceived wait time. Since basic information and primary tasks (such as deposits, booking appointments and bill payment among others) can be carried out through touch screens of self-help interactive kiosks, digital signage can reduce actual wait time and your staff doesn’t need to answer queries.

Personal connection

Digital signage in BFSI can provide a personal connection with its audiences. While consumer feedback can evoke confidence in potential customers and festive wishes to upgrade in branch experience, leadership talk proves beneficial especially during crises. Axis Bank MD Amitabh Chaudhry had words of reassurance for the employees and customers that the bank was by their side when COVID-19 broke out. From crucial information such as loan moratoriums and COVID support to more personal stuff such as how one could continue to pay their staff using UPI, the bank ensured social distancing didn’t lead to financial distancing during the pandemic.

Making use of restricted employee communication time

Retail banking restricts employee communication to two hours in a day. Since employee engagement is crucial for productivity, staff retention, and profitability, DSS can optimise this limited time frame and reach a wide group. After-banking hours can be used to upskill, engage and involve the staff through new product introductions, training/SOPs or soft skill displays. While event announcements can engage, showcasing targets and accolades will involve and motivate them. To ensure maximum efficiency, Wauly Digital Signage Solution screens live stream announcements and messages, and display presentations across all the branches at pre-scheduled time during and post banking hours.

Playlist composition and choosing the right time:

Attentive viewing can drive up a business’ sales. With indoor digital signage you can regulate the playlist to distribute the right content at the right time and in the right manner. Divide the content smartly to display sufficient material while avoiding overfeeding with single information. Screens can present this data in the morning, business hours, lunch hours and after hours to reach the TG.

When one chooses to revamp branches by using digital signage in banks, they essentially embibe efficient services and ROI through a quick-reaching, cost-effective, and focused solution.

[loanandfinance]

RBI's Extended Moratorium on EMI: Key Things You Need to Know - IIFL Home Loans

Stay informed about RBI's extended moratorium on EMI. Explore the key details and implications you need to know. Navigate the financial landscape confidently with crucial insights into the extended EMI moratorium. Visit us to know more on home loans.

[financelatestnews]

Missed Personal Loan EMI? Here's What Will Happen!

Between 2015 and 2018, unsecured loans have witnessed a growth of approximately 4 times bank credit. The spurt in people opting for personal loans is attributed to various reasons like technology-based disbursements, lower interest rates, quicker disbursements etc. Although availing quick personal loans may be beneficial in most situations, the ease of availing loans accompanied by other unforeseen events in life that may cause you to miss a personal loan EMI.

Who is a Loan Defaulter?

Failure on the part of the borrower to honor several EMIs in a timely fashion and further inability to make payment during the grace period or pay late fees earns the title of a loan defaulter.

Must Read: How to Apply for a Personal Loan Online - Step by Step Process

Missed loans are classified into 2 main categories by most major lenders:

Major Defaults Not honoring your loan EMI for more than 90 days is considered a major default and can severely affect your financial health. This can affect your ability to access funds in the form of loans in the future.

Minor Defaults Failure on the part of the borrower to honor the EMIs for less than 90 days is referred to as a minor default.

What happens if Personal Loan EMI is Missed?

Affects credit score and ability to obtain finance The credit score is an important factor for all lenders while evaluating a potential borrower. Lenders refer to the credit report and score generated by credit rating agencies and this plays a determining role in whether a candidate’s application is to be accepted or rejected. Most lenders consider a score of above 750 healthy which helps in availing loans at attractive rates of interest. Missing your EMI payment can lead to a setback in your credit score affecting your ability to obtain credit in the future.

Increase in the amount payable Delay in payment of EMIs attracts additional interest at the rate of 2% per month, thereby increasing the total amount payable.

Legal Action Sometimes, lending institutions might initiate legal proceedings to recover the money. However, since personal loans are unsecured, lenders will try recovering the amount by having discussions with the defaulter. In case of minor defaults - such as a missed payment due to a genuine issue, it is recommended for borrowers to discuss the issue with their lenders as soon as possible so that there is no major impact in terms of extra charges or credit score.

Must Read: 5 Simple Ways to Repay Your Personal Loan Quickly

How Can I Avoid Defaulting on my EMI Payments?

On borrowing a loan attempts should be made to avoid defaulting on payments, however, in unfortunate situations that might cause you to default on your payments, these are the different options that you can consider:

Plan your finances in advance A personal loan EMI calculator is an online tool that can help you arrive at an estimate of how much you can borrow taking into consideration multiple factors. This, in turn, can help plan your monthly EMIs at the outset ensuring that your loan repayments do not hinder your living expenses.

Communicate with your lender If, due to any reason you foresee inability to repay the loan amount or even a part of the loan payment, it is in your interest that you communicate to the lender about your economic situation. These are the various options you can consider in this situation:

In the unfortunate situation that you are laid off or your business comes to a temporary halt, you can request your lender to provide you with a brief waiver until the situation improves. For instance, during the economic fallout due to the COVID-19 pandemic and subsequent lockdowns, the RBI had directed all lenders to provide a 3-month moratorium facility, which later got extended to another 3 months. Post Sep, 2020; the RBI also allowed a one-time restructuring of loans, which enabled borrowers affected by the economic crisis to get some relief in terms of EMI amount reduction or in some cases, an extended moratorium.       

You could request your lender to allow you to make part payments which can help in reducing the EMI and the interest payable every month.

Manage your budget and cut expenses so that you can use the funds towards loan repayment.

Opt for a Personal Loan Balance Transfer

If you are considering refinancing your loan to avail a better deal on your loan, Fullerton India offers a variety of loan products to suit your requirements. You can be assured of a practical solution that meets your requirements.

If you happen to miss a personal loan EMI, don’t be disheartened. Opt for the most suitable solution and stay focused on your goal of building a strong financial background in the long run!

Source URL: https://www.smfgindiacredit.com/knowledge-center/what-happen-when-missed-your-personal-loan-emi.aspx

[india7d]

Driving Transformation: The Role of Credit Bureaus and Technological Innovation in India's Lending Space

Credit bureaus in India, including CIBIL, Equifax, Experian, and CRIF Highmark, are playing a crucial role in driving changes in the lending space and financial services sector. These agencies provide detailed credit reports and scores for individuals, and they are undergoing a significant digital transformation. To predict customer behavior and lending patterns, credit bureaus are investing in advanced technologies and practices, such as AI/ML, data analytics, and blockchain, to make faster credit decisions and add value to their clients. Pinkesh P Ambavat, the CIO and IT Director of CRIF India, shared insights into the credit bureau market in India and the role of technological innovation. CRIF Highmark, headquartered in Mumbai, claims to be India's first full-service credit bureau, offering comprehensive credit information for all borrower segments, including retail consumers, MSMEs, commercial borrowers, and microfinance borrowers. The credit industry in India has witnessed rapid evolution over the past decade, with a shift in consumer mindset from a savings-focused and debt-averse country to a more consumption-focused, leveraged economy. Unsecured lending has experienced growth, especially with smaller ticket sizes. The volume of consumer inquiries for personal loans and credit cards has significantly increased, while inquiries for loans against property and home loans have remained unchanged or slightly decreased. Digital transformation has disrupted lending, making it possible to approve loans within minutes through a few touches and clicks on a smartphone. Lenders are constantly innovating with the latest technologies to enhance customer experience and convenience. Those who fail to adopt digital acquisition may face challenges in the future. The Covid-19 pandemic has had a major impact on financial institutions, and individual borrowers and lenders are expected to adapt to the new normal. To ease the financial burden on borrowers, the Reserve Bank of India (RBI) announced debt servicing relief using a moratorium policy. Credit bureaus had to make changes to their scoring models to comply with RBI regulations and ensure that individuals' creditworthiness was not affected by the ongoing pandemic. Despite the challenges posed by the pandemic, there has been a gradual increase in the number of inquiries made by customers, indicating significant growth potential for credit bureaus. Credit bureaus in India face several challenges, particularly in the online lending segment. They need access to alternative data sources to assess the creditworthiness of borrowers who may not have a formal credit history. Fintech companies are using AI to create alternate lending data scores for the significant portion of the Indian population that lacks credit scores. Analytics play a crucial role in gaining market insights and building products tailored to customer needs. Blockchain technology can be used to update customer data in credit bureaus in real-time, ensuring accurate and up-to-date information. Cybersecurity is another challenge that credit bureaus face, and they prioritize the use of the latest security tools and industry practices to protect customer data. As the CIO of CRIF India, Pinkesh P Ambavat is responsible for driving digital transformation through emerging enterprise technologies and strategic initiatives. He assists CRIF in providing innovative product solutions related to open banking, anti-fraud measures, and digital banking business lines. Ambavat leads various initiatives to deliver high-performance solutions by capitalizing on cutting-edge technologies. He also oversees overall operations, infrastructure, security, and applications, with cross-cultural engagements across India and Asia. One significant moment in Ambavat's career was the implementation of machine learning in the customer matching algorithm at CRIF. With the increasing volume and variety of data, traditional analytics methods were unable to keep up with the demand. Machine learning models provided deep insights and understanding needed to improve credit decision models and assess risks accurately. Machine learning algorithms integrate real-time data trends and human decision-making, offering advantages over human judgment or traditional statistical models. Ambavat emphasizes the importance of squeezing every ounce of information from different sources and using improved algorithms. The objective is to enhance the efficiency of the credit scoring model and further improve the digital strategy. CRIF is working on creating partnerships for alternative sources of data to identify new parameters for credit scoring and enhance scoring mechanisms. Alternative data plays a vital role in improving credit scores. Robotic Process Automation (RPA) is being implemented in various business processes to automate and standardize repeat tasks. RPA programs increase flexibility, scalability, and operational efficiency while reducing the risk of errors. CRIF has automated repetitive requests in the product support teams, allowing them to focus on innovative and challenging tasks. Custom data analysis reports are also being developed to provide analytical solutions to new clients, addressing their specific business problems.  Credit bureaus in India are witnessing significant growth and undergoing digital transformation. They are leveraging technologies like AI/ML, data analytics, and blockchain to improve customer experience, make faster credit decisions, and add value to their clients. Challenges such as sourcing credit score data, cybersecurity, and adapting to the post-pandemic landscape are being addressed through innovative solutions and advanced technologies. Read the full article

[best2daynews]

EMI payments on loans across spectrum eligible for 3-month stay

In a major relief to auto and home loan borrowers, the RBI on Friday permitted lenders, including banks and NBFCs, the power to impose a three-month moratorium on EMIs of borrowers on loans that they have disbursed.

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How the demand in the economy be revived?

 During this lock down, amidst the discussion for the cure for COVID-19 virus, similar concern is for the upcoming situation economy once the lockdown is lifted.

In a recent interview, the Nobel laureate Abhijeet Banerjee had mentioned an idea that pumping up the demand in the economy is important. 

One of the suggestions put forward is to provide money to the bottom 60% of the population, rather than targeting a specific group of people to provide help. There might be some people who may not need the money, but that would also suffice since they would spend the extra money generating demand.

There are different organisations which can help in regenerating the demand and restart the economy.

THE GOVERNMENT

The government needs to step in decisively and lead the turnaround through focused public policy and public spending. One of the major and good decisions taken by the government was putting moratorium on debt payments.

The government should consider the resumption of work on infrastructure and construction projects all over the country that was abruptly halted due to the lockdown. This will have the immediate effect of creating employment and ensure wages to laborers.

The government should view this  anti-China sentiment as an opportunity for India that could be monetized by positioning India as an able contender to service the value chains and attract FDI.

THE BANKS

RBI has already taken many steps to improve the liquidity condition n the economy like cutting the repo rate and CRR, as well  as opening a special credit window for mutual funds to maintain stability in economy.

These provisions would help in taking loans on lower interest rates by the people as well as regaining faith of the investors in the market to invest more.

The Reserve Bank of India has also eased new lending for cars, residential housing and small businesses and introduced a $14bn facility that allows commercial lenders to borrow more cheaply from the central bank.

NBFC

MFIs and NBFCs are gearing up to resume full operations in the safer areas after the government lifted various restrictions. 

These companies can bring the much-needed diversity to the financial market by diversifying the risks, increasing liquidity in the markets thereby promoting financial stability and bringing efficiency to the financial sector. 

Microfinancing is also an important part since lending on small scale would drive up the demand in the market.

NFBCs are also engaging in funding small-scale industries and MSMEs which will create a base for the regrowth and a back support system for the economy.

As it has been recently observed that that after easing up on opening of liquor shops, Indian states has already generated revenue of more than 100 Cr.

Similarly, creating demand in other sectors is also important.

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लॉकडाउन से छोटी कंपनियां हो सकती हैं दिवालिया, NBFC कंपनियों और रेटिंग एजेंसियों ने चेताया

लॉकडाउन से छोटी कंपनियां हो सकती हैं दिवालिया, NBFC कंपनियों और रेटिंग एजेंसियों ने चेताया

<p style="text-align: justify;"><br />लॉकडाउन से छोटी कंपनियों पर सबसे ज्यादा असर हो सकता है. एनबीएफसी कंपनियों और रेटिंग एजेंसियों ने इसकी चेतावनी दी है. इनका कहना है कि अगर लॉकडाउन लंबे चले तो छोटी और मझोली कंपनियों के सामने क्रेडिट का &nbsp;संकट खड़ा हो सकता है. &nbsp;इन एजेंसियों का कहना है पिछले &nbsp;साल लॉकडाउन के दौरान छोटी और मझोली कंपनियों को सरकार की ओर से अतिरिक्त फंड यानी क्रेडिट…

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मोरोटोरियम पर फैसला आज: सुप्रीम कोर्ट लोन मोराटोरियम केस पर आज करेगा सुनवाई, बैंक कर्जदारों के लिए राहत की उम्मीद

मोरोटोरियम पर फैसला आज: सुप्रीम कोर्ट लोन मोराटोरियम केस पर आज करेगा सुनवाई, बैंक कर्जदारों के लिए राहत की उम्मीद

Hindi News Business EMI Loan Moratorium News; Supreme Court Loan Moratorium Verdict Today Latest News Update Ads से है परेशान? बिना Ads खबरों के लिए इनस्टॉल करें दैनिक भास्कर ऐप नई दिल्ली9 मिनट पहले कॉपी लिंक मोरेटोरियम का मतलब होता है आप अगर किसी चीज का भुगतान कर रहे हैं तो उसे एक निश्चित समय के लिए रोक दिया जाएगा। – फाइल फोटो लोन मोरोटोरियम केस पर सुप्रीम कोर्ट मंगलवार को सुनवाई करेगा। यह…

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SC breather to customers, directs government to implement decision to forego interest on loans

SC breather to customers, directs government to implement decision to forego interest on loans

The Supreme Court on Friday heard petitions seeking interest waiver during the loan moratorium period. A bench headed by Justice Ashok Bhushan said the COVID-19 pandemic has not only caused serious threat to the health of the people but has also cast its shadow on the economic growth of the country along with other countries of the world. After the hearing, the apex court directed the government…

[loanandfinance]

Things to know about RBI's Extended Moratorium on EMI

Renovate, innovate, and rejuvenate your home with our Home Improvement Loans. Explore flexible financing options and turn your vision for a perfect home into a reality. Start your transformation journey with IIFL Home Loans.

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Raghuram Rajan's take on Revival of Indian Economy

Former RBI governor Raghuram Rajan has been very active in providing ideas and solutions to save Indian Economy from falling too deep in the Crisis.

In an interview with Rahul Gandhi he shared his views on how to protect the agriculture sector and the rural areas, he said that some rural areas are self sufficient and the most important thing for the government is to shield the people from starvation and it can be done through branching out the PDS system.

The government doesn't have a choice between saving lives and livelihoods, it has to do both. Since the lockdown can't last long, next focus should be on restarting the economy.

For restoring the economy, protection of the real economy is important. The government should not consider just the fiscal deficit numbers but on safeguarding the health of real economy. It involves protection of people and social harmony as it's important to restore the faith of people back on the government and the Central bank.

The ex-RBI governor also suggested to prioritise the wise spending because it'll be good to have plenty of resources but at what cost? So prioritisation is important.

According to his suggestion it is also important to restore the faith of investors in the market because it is in their long term interest also. They should be signalled that over a medium term the economy would restore the fiscal discipline.

Raghuram Rajan believes that this time India will be different fight better against the pandemic crisis.

It can be understood by his statement as in the last global financial crisis Indian Economy took a long time to revive back to normalcy due to it's limited resources, but this time with strengthening financial institutions and easement in fiscal as well as monetary policies a different India may emerge.

[caritishraj]

Moratorium Extension News | Supreme court hearing on moratorium 14 Octob...

[news-express]

Centre’s big relief to borrowers, issues guidelines for interest waiver on loans upto 2 crores If you have taken a loan from the bank and worrying about your EMI payments then there is some good news for you.