Tag: Microfinance

This post analyses the present regulations governing the restructuring of personal loans and their implications for the borrower’s credit score and her credit record

Formal credit providers have increasingly gained prominence as a channel for distribution of non-credit products, such as insurance, investment and retirement products, to low-income households in India.

This problem can be solved by link-ups with large supply chains and networks that disperse risk and place small businesses in a better position to get loans and attract equity investors.

Given the extent of liquidity shock caused by Covid-19, the Reserve Bank of India enabled all lending institutions to provide their borrowers with a repayment moratorium on term loans until 31 August 2020.

Solving the identity problem is necessary to enable a shift away from a survival mindset and towards a growth mindset

The Indian government has set into motion the implementation of several schemes that are aimed at improving both the liability and asset sides of the balance sheets of banks and non-banking financial companies (NBFCs), so that lending to the real economy can increase. The most recently introduced are four schemes.

Response to the rescue package announced by Finance Minister on May 13th, 2020

The goal cannot be eliminating all MSME failure as we simply don’t have the resources to provide that magnitude of a backstop.

Cash withdrawals through micro ATMs have surged in the wake of covid-related disruptions in the operations of banks and business correspondents.
But a considerable number of these transactions fail, thus worsening the pain of the vulnerable sections.

The present government has set great store by micro, small and medium enterprises (MSMEs) and entrepreneurship as engines of growth.