Optimising Business Performance: Managing Cash Flow with Working Capital Loans

Effective cash flow management is crucial for the success of any business, particularly in light of rising interest rates. The cornerstone of maintaining healthy cash flow lies in the adept handling of working capital, which encompasses short-term assets and liabilities like cash, inventory, and accounts payable and receivable.

Skillful management of these components is imperative to sustain adequate cash flow, particularly during expansion phases or economic unpredictability.

Enhancing working capital management directly amplifies the amount of free cash flow accessible for distribution, debt settlement, and reinvestment. Additionally, it boosts valuation multiples that investors and analysts heavily rely on. Prioritising working capital optimisation is crucial when evaluating acquisition prospects or enhancing the performance of portfolio companies.

Understanding Working Capital Loans

A Working Capital Loan serves as a financial resource tailored to sustain the day-to-day functions of a business. It addresses various operational expenses such as employee salaries, accounts payable, and other short-term financial commitments.

Businesses encountering irregular sales patterns or seasonal fluctuations often need help maintaining a consistent cash flow. In such scenarios, a Working Capital Loan proves indispensable, furnishing the necessary funds to uphold seamless operations.

Understanding that a Working Capital Loan is not meant for business expansion endeavours or asset procurement is essential. Instead, its purpose lies in meeting immediate financial obligations and operational necessities, enabling businesses to concentrate on their long-term objectives with confidence.

Identifying Your Cash Flow Needs for Better Loan Procurement

Understanding your business finances hinges on grasping your cash flow statement, a vital financial document. Yet, interpreting this statement can feel like unravelling a complex code for many entrepreneurs and small business owners. However, with a bit of guidance, decoding and analysing your cash flow statement is entirely feasible.

So, what exactly does a cash flow statement entail?

It is a financial snapshot illustrating the movement of money into and out of your business during a specific timeframe. This encompasses all revenue sources and incurred expenses within that period.

To analyse your cash flow statement effectively, it is crucial to break it down into three primary sections: operating activities, investing activities, and financing activities. Each section offers insights into distinct facets of your business's financial well-being.

Operating activities delineate the day-to-day operations of your company, encompassing aspects like sales revenue and operational expenses. Investing activities pertain to any purchases or sales made by your company, such as acquisitions of property or equipment. Meanwhile, financing activities focus on changes in debt levels or equity.

Thoroughly scrutinising each section independently while also considering overall trends in positive or negative cash flows over time, empowers you to make informed decisions regarding procurement and fosters optimal growth potential for your business.

How to Secure a Working Capital Loan?

Securing a working capital financing involves several steps to ensure that your business is well-prepared to meet the lender's requirements and demonstrate its ability to repay the loan. Here's a general guide:

Assess Your Needs: Determine the amount of working capital required for your business. Analyse your cash flow projections and identify the specific areas where additional funds are needed to cover operational expenses, such as inventory purchases, payroll, or accounts payable.

Prepare Financial Documentation: Gather all necessary financial documents, including balance sheets, income statements, cash flow statements, and tax returns. Lenders will use these documents to evaluate your business's financial health and repayment capacity.

Develop a Solid Business Plan: Craft a comprehensive business plan that outlines your company's objectives, market analysis, competitive landscape, and financial projections. A well-defined business plan demonstrates to lenders that you have a clear strategy for utilising the working capital loan effectively and achieving growth.

Research Lenders: Explore different lending options, including traditional banks, credit unions, online lenders, and alternative financing sources offering the right collateral-free business loans. Compare interest rates, terms, and eligibility requirements to find the best fit for your business.

Improve Creditworthiness: Strengthen your business credit profile by paying bills on time, reducing outstanding debts, and resolving any past credit issues. A strong credit history increases your chances of qualifying for a working capital loan at favourable terms.

Collateral and Guarantees: Be prepared to provide collateral or personal guarantees to secure the loan, especially if your business lacks a strong credit history or sufficient cash flow. Collateral may include business assets such as equipment, inventory, or real estate.

Prepare Loan Application: Complete the loan application accurately and thoroughly, providing all requested information and supporting documentation. Be prepared to explain how the working capital loan will benefit your business and contribute to its growth.

Negotiate Terms: Review the loan terms carefully, including interest rates, repayment schedule, fees, and any other conditions. Negotiate with the lender to ensure favourable terms align with your business's financial needs and objectives.

Monitor Progress: Stay in communication with the lender throughout the loan application process, providing any additional information or documentation as requested. Be proactive in addressing any concerns or questions the lender raises to expedite the approval process.

Use Funds Wisely: Once you secure the working capital loan, use the funds wisely to address your business's specific needs and improve its financial stability. Monitor your cash flow regularly and make timely repayments to maintain a positive relationship with the lender.

Conclusion

Working Capital Loans are indispensable for the sustained operations of small and medium enterprises (SMEs). They provide vital financial support to meet short-term obligations, manage inventory, and cover day-to-day expenses critical for business continuity.

These loans have varying tenures, typically ranging from 6 to 48 months, and interest rates are determined through individual assessments. In compliance with Reserve Bank of India (RBI) guidelines, the loan amount often correlates with business turnover.

Additionally, Non-Banking Financial Companies (NBFCs) emerge as one of the prime options for MSMEs seeking working capital or business loans, offering competitive terms and tailored solutions.

Kinara Capital Commits ₹ 575+ Cr in Business Loans Disbursement for MSMEs in Karnataka by FY24

myKinara App, available in Kannada, simplifies process for MSMEs to avail Business Loan

Kinara Capital, a fast-growing fintech driving MSME financial inclusion, today reiterated its commitment to fostering MSMEs in Karnataka. It aims to disburse over INR 575+ crores in business loans in FY24 and support the growth of MSMEs in the state.

Elaborating about the plan, Thirunavukkarasu R (Thiru R), Chief Operating Officer (COO), Kinara Capital, said, “Karnataka is a vibrant, growing region with a diverse MSME sector. Kinara Capital is proud to be headquartered in Karnataka and for over a decade, we have supported thousands of small business entrepreneurs in this state. Our commitment to disburse over INR 575+ crores in FY24 to MSMEs in Karnataka will boost business growth and lead to the creation of 6000+ new jobs in local economies.”

MSME business owners can start the process at their convenience with our easy to use myKinara App, available in Kannada. In FY23, Kinara Capital had disbursed over INR 341 crores, 141% higher than FY22 in the state.

The ambitious disbursement plan for this fiscal (FY24) will be supported by operational enhancement. Recently, Kinara Capital has opened 3 new branches in Haveri, Humnabad and Ramanagara and expanded its geographical presence to over 28 branches and 658 pincodes. Furthermore, the company plans to increase its employee strength in Karnataka to 930 employees, with over 300 new hires across Kinara Capital’s Offices in this fiscal .

Headquartered in Bengaluru, Karnataka, Kinara Capital Capital provides MSMEs with collateral-free loans in the range of INR 1 lakh to INR 30 lakhs through its various products such as Long-term Working Capital and Short-term Working Capital, Machinery Purchase, Bill Discounting and HerVikas loans to across 300 sub sectors.

Till date Kinara has disbursed more than INR 1,089 crores across 20,717 business loans in Karnataka. The support from Kinara has led to over INR 79 crores in incremental income generation for the small business entrepreneurs, and created over 21,437 new jobs in the local economies. Food Products , Construction Material, Machine Components, Textiles, Fabrication, Auto Components, Automobiles etc are some of the leading sub-sectors for Kinara Capital in the state.

Kinara Capital has also been working towards empowering MSME women entrepreneurs through its focused program HerVikas. Under the program, women entrepreneurs are supported with an upfront automatic discount on their business loans. Through HerVikas program, Kinara Capital has disbursed more than INR 87 crores across 956+ business loans to women entrepreneurs in Karnataka. The company is looking at scaling up its commitment and extending its support to more women-owned MSMEs in the state.

Kinara Capital is a fast-growing fintech company and is globally recognized for disrupting the small business lending model in India by democratising access to collateral-free business credit in India. Kinara Capital has disbursed over INR 5,000+ crores to date across 90,000+ collateral-free business loans thereby propelling vast financial inclusion of India’s MSME sector. Leading with a women- majority management team, Kinara Capital has raised the bar for gender inclusivity internally as an organisation and externally with its HerVikas program for women entrepreneurs. The company is qualified as a Systemically Important NBFC by the Reserve Bank of India (RBI) and is a debt-listed entity on the Bombay Stock Exchange (BSE). Founded in 2011, and headquartered in Bengaluru, Kinara Capital has 133 branches serving MSMEs across 100+ cities in India with a workforce of 1,600+ employees. Visit kinaracapital.com for more information and follow us on Twitter @KinaraCapital.

Scheme To Extend MSME Loans/Credits To Artisans, Craftspeople Launching on Vishwakarma Jayanti

Now Artisans too can avail MSME loans: D. Chandrasekhar, ADC, Ministry of MSME, Govt of India.

PM Vishwakarma Kaushal Samman Scheme will be launched in Hyderabad and Warangal on 17th Sept: MSME Ministry Official

The PM Vishwakarma Kaushal Samman Scheme is expected to revive the rich Indian craft traditions and encourage the artisans to enrich the heritage, said – D. Chandrasekhar, Addl Development Commissioner, Ministry of MSME, Govt of India.

He was the chief guest at the Inauguration of the three-day Industrial & Engg Expo (Indexpo), supported by the MSME Ministry, Government of India with a focus on the future of manufacturing. The expo is currently underway till this Sunday.

Organised by Indore Infoline, it is their 7th edition.

It is supported by the MSME Ministry, NSIC Cherlapally Industries Association and other trade associations.

D. Chandrashekar ADC of MSME (Extreme Ieft in Jacket) Ministry Seen Inaugurating Indexpo

Speaking further the official said the PM Vishwakarma scheme aimed to provide credit to artisans and craftspeople is set to be launched by Prime Minister Narendra Modi in Delhi on the occasion of Vishwakarma Jayanti on September 17. It will be launched in Hyderabad and Warangal in Telangana by various Ministers and officials, he said. 

The scheme will extend loans of up to Rs 1 lakh to artisans at an incredibly low interest rate of 5%. This interest rate is significantly lower than prevailing market rates, enabling artisans to access credit without the burden of exorbitant interest charges.

Nearly three lakh artisans are said to be benefitted across India. In Telangana, a significant number of artisans are said to benefit in Telangana.

MSME has financed 57 exhibitors out of 100 to exhibit their products in the IndExpo. We plan to support 17 exhibitions every year, D. Chandrasekhar said.

Mr Raj Kumar Agrawal, MD of Indore Infoline, the organizer of the expo said IndExpo allows industry professionals and enthusiasts to explore the latest advancements and trends in the manufacturing industry.

The future of industrial engineering is designing and manufacturing more flexible, connected, and adaptable machines, said Mr Raj Kumar Agrawal.

The Indexpo aims to bring together leading players, manufacturers, suppliers’ experts, and innovators from the industrial manufacturing and service sector under one roof.

Industrial Safety Equipment Seen at INDEXPO at Hitex

The event is set to be a hub of knowledge-sharing, networking, and business growth.

100 Exhibitors are showcasing 20,000+ Products like Hand Tools, Machine Tools, Robotics, industrial automation, solar power plants, electricals and electronics, safety products and many other industry-specific products said Rajkumar Agrawal, Managing Director, Indore Infoline Pvt Ltd.

The Advantages of Unsecured Business Loans for Women-Owned Businesses

In today's dynamic business landscape, women entrepreneurs are making remarkable strides, bringing innovation, creativity, and leadership to the forefront. To empower and support the growth of women-owned businesses, these loans provide a range of advantages. This includes competitive Business Loan interest rates, flexible repayment terms, and simplified application processes. In this article, we will explore the advantages of Unsecured Business Loans for women-owned businesses and how they can fuel their success.

Advantages of Unsecured Business Loans for Women Entrepreneurs

Easy Access to Funding

One of the primary advantages of Unsecured Business Loans for women-owned businesses is easy access to funding. Unlike Secured Loans that require collateral, Unsecured Loans do not necessitate the pledging of assets, making the loan application process simpler and faster. Women entrepreneurs can swiftly obtain the funds they need to start a new venture, expand an existing business, or invest in technology and equipment.

Financial Independence

Unsecured Business Loans provide women entrepreneurs with the opportunity to achieve financial independence. By accessing capital without the requirement of collateral, women-owned businesses can retain ownership of their assets and maintain control over their business decisions. This independence allows women entrepreneurs to pursue their vision and make strategic choices without compromising their business's long-term growth.

Tailored Loan Amounts

Unsecured Business Loans offer flexibility in loan amounts, allowing women-owned businesses to access the capital required for various purposes. Whether it's expanding operations, purchasing inventory, investing in technology, or marketing initiatives, Unsecured Business Loans can be tailored to meet specific business needs. This enables women entrepreneurs to seize growth opportunities and stay competitive in their respective industries.

Competitive Interest Rates

Financial institutions understand the importance of providing access to capital at favorable terms for women-owned businesses. As a result, Unsecured Business Loans often come with competitive Business Loan interest rates, making the borrowing process affordable and cost-effective. Lower interest rates enable women entrepreneurs to manage their finances more effectively, improve profitability, and invest in sustainable growth strategies. Women-owned businesses can leverage these competitive Business Loan interest rates to maximize their return on investment.

Shorter Loan Terms

Unsecured Loans often have shorter repayment periods compared to Secured Loans. This is because lenders try to mitigate their risk by limiting the time during which the borrower has to repay the loan.

Networking and Support

Many financial institutions that offer Unsecured Business Loans for women entrepreneurs also provide networking opportunities, mentoring programs, and support services specifically designed to assist women-owned businesses. These additional resources can offer valuable guidance, connections to potential customers or investors, and access to industry-specific expertise, further boosting the chances of success for women entrepreneurs.

Quick and Convenient Application Process

Financial institutions, such as NBFCs, understand the value of time for women entrepreneurs. The application process for Unsecured Business Loans is streamlined, making it quick and convenient. These institutions prioritize efficiency and aim to minimize the time and effort required for loan approval and disbursal.

Flexible Loan Amounts

Unsecured Business Loans offer flexibility in loan amounts, allowing women-owned businesses to access the capital required for various purposes. Whether it's expanding operations, purchasing inventory, investing in technology, or marketing initiatives, Unsecured Business Loans can be tailored to meet specific business needs.

Business Expansion and Growth

Unsecured Business Loans provide women-owned businesses with the financial boost needed to expand operations and foster growth. Whether it's opening new locations, hiring additional staff, or investing in marketing and advertising campaigns, these loans offer the necessary capital to fuel expansion plans.

Enhanced Cash Flow Management

Maintaining a healthy cash flow is vital for any business's success, and Unsecured Business Loans can play a pivotal role in achieving this. Women-owned businesses often face challenges in managing cash flow due to factors such as delayed payments or seasonal fluctuations. Unsecured Business Loans provide the necessary liquidity to bridge these gaps, ensuring a steady cash flow and enabling businesses to meet their financial obligations promptly.

Conclusion

Unsecured Business Loans have emerged as a game-changer for women-owned businesses, providing them with the financial support they need to thrive and succeed in today's competitive business environment. The advantages of easy access to funding, financial independence, tailored loan amounts, competitive Business Loan interest rates, business expansion opportunities, enhanced cash flow management, building credit history, and networking support contribute significantly to the growth and success of women entrepreneurs. By leveraging these advantages and accessing Unsecured Business Loans, women-owned businesses can unlock their full potential, drive innovation, and contribute to economic empowerment and gender equality in the business world. 

NeoGrowth Launches Accelerator Business Loans Up to ₹ 20 Lakhs for Immediate Dissemination

Mr.Arun Nayyar,Whole-Time Director & CEO, NeoGrowth 

Neogrowth Launches Accelerator Business Loan; Fast-tracks Loans Up to INR 20 Lakhs - for Immediate Dissemination

Integrates Account Aggregator-based Digital lending across its portfolio

NeoGrowth, the MSME-focused FinTech lender leveraging the digital payments ecosystem, has announced the launch of its new business loan offering, NeoGrowth Accelerator, on the occasion of World MSME Day. The company recently kickstarted its MSME festival and will be undertaking multiple activities to celebrate the spirit of India’s small business owners. The company is now live on the Account Aggregator framework to further strengthen digital lending for MSME borrowers.

NeoGrowth Accelerator is a collateral-free term loan of up to INR 20 lakhs for the underserved MSME segment comprising Manufacturers, Distributors, Traders, Dealers, and Service Providers. The product is designed to fulfill the working capital requirements of GST-registered MSMEs based on their cash flows. This new launch is in tune with NeoGrowth’s ‘Keeping It Simple’ philosophy. NeoGrowth follows data-based decision-making and leverages scorecards and algorithms for customer assessment.

Through the Account Aggregator (AA) ecosystem, NeoGrowth aims to address the MSME credit gap in India and is among the early adopters in the NBFC sector to embed it into its processes. The company integrates account aggregator information, credit bureau scores, proprietary data, and other internal metrics to thoroughly assess potential borrowers and provide hassle-free loans that leverage the digital payments ecosystem. MSME customers will now be able to share all their banking information in a consolidated dashboard and avail credit in a seamless manner.

Arun Nayyar, Whole-time Director & CEO, NeoGrowth, said, “Our objective has been to enhance credit penetration among small businesses with seamless access to loans. Getting loans has always been a challenge for small retailers in India due to complex documentation, time-consuming procedures, and the traditional approach to underwriting. The Accelerator loans offer two convenient and quick options for businesses, with minimal paperwork to help our borrowers scale up their business easily. To make the loan journey simpler for our MSME customers, we have integrated the Account Aggregator framework across our processes.”

With close to a decade’s experience in serving the credit needs of India’s MSMEs, NeoGrowth has a finger on the pulse of small business owners and is constantly innovating to provide the best-in-class credit offerings to its customers. NeoGrowth leverages the latest developments in technology and data science to strengthen its unique product offerings.

NeoGrowth is a new-age digital lender, with a focus on Micro, Small, and Medium Enterprises (MSMEs). We are a Systemically Important, Non-Deposit taking Non- Banking Financial Company (NBFC-ND-SI), offering a wide range of products tailored to the dynamic needs of small businesses. Our data science and technology-led approach enable us to offer quick and hassle-free loans to MSMEs across 70+ segments across 25+ cities in India. We offer a unique daily repayment option to our customers with multi-channel repayment modes. We have served and engaged with 1,00,000+ businesses and supported them with their growth ambitions. We not only help small businesses grow but also drive financial inclusion making a positive social impact.

Founded by industry veterans, our Board of Directors comprises experts, who guide the leadership team toward our strategic goals. NeoGrowth is backed by renowned investors, namely Omidyar Network, Lightrock, Khosla Impact, Accion Frontier Inclusion Fund – Quona Capital, IIFL Seed Ventures Fund, WestBridge, and Leapfrog Investments.

For more details, https://www.neogrowth.in/

Manage Working Capital With an Instant Business Loan From Ziploan

https://ift.tt/2zaxEZA

Business Wire India
After the second wave of Covid 19 many businesses are now ready to operate. But the problem most businesses facing right now is the lack of funds. Lockdown almost stopped all business activities and most businesses found it difficult to manage their cash flows.

For budding entrepreneurs starting up new businesses, incorporating the a business entity is the first step and options varies from One Person Company, Limited Liability Company (LLC), Private Limited and Limited company. For these options, refer - how to get an llc, how to register a company/startup in India and thereafter preferably go for registering the company under Startup India Scheme (see steps)

This is exactly where an online business loan can play a big role. Getting a business loan is easy and hassle free and one can apply for it within a few minutes online without leaving out their home. And the best part - one can use the fund for almost any requirement which can help in business growth like managing working capital, buy or upgrade machinery, purchase new shop/office, hire skilled employees, and more.

Ziploan, offers instant business loans up to Rs. 7.5 lakh to meet the financial needs of business owners. Availing business loan from Ziploan is seamless and have several benefits.

Loan up to Rs. 7.5 lakh - With a quick fund of Rs. 7.5 lakh business owners can easily fulfil their working capital needs. Whereas flexible ticket size makes it easy to pick the loan amount that actually requires.

Loan in 3 Days* - Online submission procedure of required documents helps complete the process faster. Customers can get loan approval within three days* after submitting the required documents.

Apply online - The entire system operates online to process loan applications faster and fair. Clients can get funds in their account once the documents get verified.

Simple eligibility and documentation process - Few documents and easy to meet eligibility criteria ensure more borrowers avail a business loan from Ziploan.

Following are the eligibility criteria to avail business loan from Ziploan:
 

• Business vintage should be more than 2 years
• Minimum annual turnover should be more than 10 lakhs in last year
• Last year ITR should be more than Rs. 1.5 lakhs
• The borrower should own either house or a business place

Additionally, the documents required:
 

• Bank statement of 12 months
• Business registration proof
• PAN Card/Aadhar Card
• ITR of the previous two years

Competitive interest rates - Complete automated process makes interest rate calculation fair. The interest rates vary depending on the business's repayment ability.

Flexible repayment tenure - Ziploan offers Flexi facility making it easy for borrowers to repay the loan amount. The tenure starts from 12 months to 36 months therefore, the customer gets enough time to repay the loan amount.

Additionally, there are no prepayment charges after first six paid EMIs (excluding pre-EMI).

All these features along with flexible repayment tenure of up to 36 months, makes this business loan a smart solution when urgently need funds to run a business smoothly.

Apply for a Ziploan business loan is easy and can be complete within minutes. Borrowers need to fill some basic details on the form, upload digital copies of required documents for verification. After the document verification, the loan amount will directly deposit into the borrowers' bank account.

To speed up slow moving businesses choose a hassle-free business loan from Ziploan.

Avail Funds for Small Business with a Business Loan from Ziploan

MSMEs contribute to a great extent when it comes to the GDP of the nation and to assist these micro, small and medium enterprises (MSME), the government of India had declared a Rs. 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for small and medium sized enterprises under the Aatmanirbhar Bharat Abhiyan package which is valid till March 21, 2021. Moreover, MSMEs who are looking for an MSME loan can also avail the same from Ziploan.

Ziploan always believes in encouraging and motivating MSME organizations to step forward and contribute to the nation, and with the help of Ziploan business loan, it becomes quite quick as well as hassle-free to boost up the slow-moving business.

Ziploan offer MSME loan up to Rs. 7.5 lakh in order to meet the financial requirements of the business owners. Business owners can avail an unsecured MSME loan without any collateral in just 3 days* once they submit all the required documents online.
 
Go on to read about business loan for SMEs.

Easy application and quick disbursal process

MSME owners who are looking to avail a business loan can apply for it online through the Ziploan website or even through the mobile loan app in order to avoid any delays. All they need to do is:

 

• Fill the business loan form with the basic details
• Upload all the relevant documents
• Get a business loan approval and a loan disbursal within 3 days* (Moreover, Ziploan also offer same-day approvals along with the disbursals within three days after the documents are submitted and verified).

Once Ziploan completes the basic eligibility and credit checks, the online business loan is disbursed directly to the business owner’s bank account, so that he/she can use it for various purpose like in the event of an emergency, or for a big project, etc.

Small business loan of up to Rs. 7.5 lakh

While looking for a business growth or expansion, revamping the existing business in some form or the other is also an option. For instance, investing in getting a larger customer base, buy new equipments, manage cash flow etc.
 
All of these initiatives need funds, and with Ziploan MSME Loan, availing a business loan up to 7.5 lacs is possible, even without any collateral. These unsecured business loan help businesses in order to meet their various expenses, and meet various capital requirements.

Variable tenure for easy repayment

To make sure that the repayment does not become a burden, Ziploan repayment tenure starts from 12 months to 36 months. And hence, a business owner gets much time to repay the MSME loan amount. For financial planning, business owners can also make use of Ziploan business loan EMI calculator and plan for future. Ziploan EMI calculator is very easy and simple to use. Simply enter the loan amount, tenure, business loan interest rate, and the business owner will easily know how much EMI he has to pay.

Moreover, Ziploan offer MSME loans at no prepayment charges once the business owner has paid the first 6 EMIs (excluding pre-EMI).

Simple eligibility and minimal documentation

Ziploan provides business loans on simple and easy to meet eligibility terms. As per Ziploan business loan eligibility criteria, a business owner can obtain a business loan if:
 

• Is aged between 23 and 65 years
• Business vintage of 2 years
• Zipscore of minimum 750
• ITR of last 2 years

 
The business loan eligibility terms needs to be met in order to secure a small business loan for a business venture which is a quite hassle-free as well.
 
To avail MSME loan, business owners need to submit a very minimal set of documents which includes the following:
 

• Identity proof
• Address proof
• Financial documents
• Business ownership proof

PM, FM, Industry Welcome RBI 'Bazooka' of interest rate cut, liquidity measures

From Prime Minister Narendra Modi to rating agencies and economists, all welcomed the Reserve Bank of India's steps to reduce the cost of borrowing and infusing liquidity in the market in its war against the impact of coronavirus pandemic. Following are the comments made by key leaders, businessmen and economists:

Prime Minister Narendra Modi: Today RBI has taken giant steps to safeguard our economy from the impact of the Coronavirus. The announcements will improve liquidity, reduce the cost of funds, help middle class and businesses.

Finance Minister Nirmala Sitharaman: Appreciate RBI Governor Shaktikanta Das' reassuring words on financial stability. The 3-month moratorium on payments of term loan installments (EMI) and interest on working capital give much-desired relief. The slashed interest rate needs quick transmission.

Alka Anbarasu of Moody's Investors Service: "RBI's guidelines permitting banks and non-bank financial institutions to grant a 3-month moratorium on loan repayments will soften the negative credit impact that the coronavirus has had on their borrowers in the near term. However, there are still material downside risks to asset quality given the halt in India's economy, the impact of which will not be known until a few quarters after the end of the moratorium.

SBI Chairman Rajnish Kumar: The RBI policy announcements are bold, decisive, compelling and with a humane touch in attenuating to the needs of the economy to fight through the pandemic.

The large rate cut, the adjustment in capital conservation buffer, the moratorium on repayments and the bazooka of conventional CRR cut and unconventional liquidity measure of incentivising banks to support CP market - all will help financial markets stabilise, lead to immediate rate transmission and address the credit needs of the real economy. Given that we are in exceptional times, RBI has played the role of championing the cause for the economy and financial system!

Cyril Shroff, Managing Partner, Cyril Amarchand Mangaldas: The RBI has unleashed a bazooka to deal with the economic pain and uncertainty prevailing. This provides a much-needed respite for borrowers and lenders in these trying circumstances and should soften the recovery period.

BJP president Jagat Prakash Nadda: RBI decision will help the middle class. I welcome these progressive and timely measures.

Oil Minister Dharmendra Pradhan: Moratorium on payment of interest on loans and working capital will provide much-needed relief to both people and businesses.

Raymond Ltd chairman and managing director Gautam Hari Singhania: The moves announced by RBI today are decisive and a comprehensive package to ensure the stability of financial markets making borrowing costs as low as possible with businesses around the country are closed and the economy is showing recessionary trends.

The steps to ease working capital pain, reduced liquidity costs and providing moratorium on term loans will alleviate stress across various sectors.

Essar Ports CEO Rajiv Agarwal: Moratorium of 3 months for interest and principle payments along with a sharp cut in the CRR will ease the liquidity and help industry as well other segments of the economy. More steps might be needed once the Government comes out with the much-needed stimulus package to overcome the economic crisis arising from COVID-19.

Anshuman Magazine, CBRE: RBI is in a mission mode to nurture the market, preserve financial stability and the timing here is crucial. The decision to defer installments of all term loans by three months will provide the necessary support to homebuyers as well.

Arun Singh, Chief Economist, Dun and Bradstreet: Strong proactive measures have been taken by RBI to address the need of the country in times of heightened uncertainty. Such robust measures were unanticipated and would restore the confidence of the market, restrict foreign capital outflows, both in the debt and equity market, and will help in arresting depreciation of rupee.

Mitigating debt servicing burden to prevent transmission of financial stress to the real economy was much needed as various countries globally have deferred loan payments from three to six months. However, banks might face difficulties meeting the capital adequacy norms which we expect will be further relaxed by the RBI during the short term.

Gayathri Parthasarathy, KPMG: It is a good decision and the time is right for RBI to intervene and announce these measures. The steps to ease working capital pain, reduce liquidity costs and provide a moratorium on term loans will alleviate stress across various sectors. Liquidity will definitely help the current situation and I strongly believe the rates could go down further by 50 to 75 basis points.

Sanjay Doshi, KPMG: Onus is now on the financial institutions to ensure better credit support to the corporate. However, given the challenging times, many corporates will have significant pressure on their income stream. Banks will have a tough job in deciding the allocation of credit.

Muthoot Pappachan Group Chairman Thomas John Muthoot: Various measures to nudge banks to lend and to inject liquidity into the system, will help in passing the benefit to the potential borrowers.

Radhika Rao, Economist, DBS Group Research: RBI pulled all the stops, delivering an aggressive rate cut. Its moves provide the right tailwind for the economy once the lockdown is complete.

Vijay Chandok, MD & CEO, ICICI Securities: The RBI has gone all out to fight the economic fallout of Covid-19. Although the rate cut is big, we believe the economy will benefit more from the liquidity and regulatory actions. PTI

PSU banks to Introduce Home, Auto Loans on 'PSB Loans in 59 Minutes' Portal

New Delhi, Aug 20 (PTI) Public sector banks are gearing up to introduce retail products, including housing and auto loans, on 'psbloansin59minutes' portal with a view to expand their retail loan business.

Currently, the portal gives in-principle approval for loans of up to Rs 1 crore to micro, small and medium enterprises (MSMEs) in just 59 minutes or less than an hour.

However, some of the banks including State Bank of India, Union Bank of India, and Corporation Bank decided to extend in-principle approval to loans of up to Rs 5 crore through the portal.

Bank of India is now planning to onboard some of the retail products on the portal for easier access to loan products. The bank is working on this and home and auto loan will be onboarded on the portal going forward, Bank of India General Manager Salil Kumar Swain told PTI.

Another state-owned lender Indian Overseas Bank (IOB) also plans to offer retail loan products on the portal.

IOB has been actively participating on the portal for sanction of MSME loans and the bank has achieved a remarkable improvement in sanctioning of loans, as the number of cases and amount sanctioned shows a manifold increase since its inception, the bank said in a statement last week.

"As the scheme has drawn healthy response from the borrowers, bank is in the process of extending in-principle sanction for loans up to Rs 5 crores under MSME. In due course of time, bank will also offer retail products (housing loan & personal loan) under this platform," it said.

The platform has helped in expediting loan disbursement and bringing ease in banking process by saving time for both bankers and customers, a senior official of another public sector bank said.

If other products are introduced on the platform, it will help expand the retail business of the bank and also bring down the transaction cost, the officer said.

The platform has helped reduce turnaround time for loan processes in such a way that MSMEs get an eligibility letter and in-principle approval in 59 minutes and can choose the bank of their choice.

After the approval letter is received, the loan is expected to be disbursed in 7-8 working days.

Touted as country's largest online lending platform, the portal was launched by Prime Minister Narendra Modi in November 2018 with an aim to make credit access and banking for MSMEs transparent and hassle-free.

The portal sanctioned loans worth over Rs 35,000 crore in less than four months from its launch.

As on March 31, 2019, more than 50,706 proposals had got in-principle approval and 27,893 proposals had been sanctioned. PTI DP

Easy Guide to Availing Pre-Approved Business Loans From Bajaj Finserv

For many small businesses that are eager to take their business forward and expand, availing business loans serve an important milestone that helps them fuel their growth. Whether it is to upgrade their existing infrastructure, expand to different business verticals or to simply support one’s business finances in the times when liquidity is affected, business loans serve as an apt financing option for one to consider.

Before applying for a Business Loan, it is extremely important to finalize on an appropriate lender and be prepared in terms of documentation, solid business plan to support the request of loan, calculation of the loan amount to be applied and other financial information. While availing business loan might seem like a tedious task, Bajaj Finserv, the lending arm of Bajaj Finance makes availing a business loan a hassle-free experience for its customers.

Bajaj Finserv offers quick, easy and pre-approved business loans that can be customized to suit the financial needs of their customers. The pre-approved business loan offers by Bajaj Finserv ensure that small businesses fast tracks into its next phase of growth.

Some of the key advantages of availing a Pre-Approved Business loan by Bajaj Finserv are:

• As per their eligibility, customers can avail a loan amount that can be utilized as and when required. There is an option where the customer pays only the interest as EMI on the amount utilized and repay the principal amount at the end of the tenor.

• Pre-approved business loans by Bajaj Finserv come at attractive interest rates. The interest rates are low and are coupled with flexible repayment options to suit the need of each individual customer.

• One can avail pre-approved business loan offers with minimal documentation.

• The pre-approved business loan amount of up to Rs. 30 lakhs can be availed by the applicant that will ensure to support the growth of his / her business operations, inventory, working capital, and other business-related requirements.

• The borrower has an easy anytime and anywhere access to their business loan statement via the option of their online account. This feature ensures convenience and optimum utilization of the customer’s time.

The eligibility criteria to avail the pre-approved business loan offers by Bajaj Finserv are simple and customer friendly as well.

Your easy guide to know your eligibility is:

Customers ranging from various business segments like Self Employed Professionals, Self Employed Non-Professionals and Registered business entities are eligible to apply for the Bajaj Fiserv’s business loan offer.

• The applicant should be from the age group range of 25 years to 55 years old.



• The business should be a minimum of three years old



• The business should have its Income Tax returns filed for at least of the past one year.




• The minimal documentation requisites are:
  
  
  
  
  
  • KYC Documents
  
  
  • Business Registration Certificate or other eligible proof of business existence
  
  
  • Relevant financial documents
  
  
  • Bank Account statement of the previous month
  
  
  • Passport size photographs of the applicant
  
  
  
  
  

~ Published unedited via Business Wire India feed