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The Government has given Air India a loan of up to Rs. 6,000 crore to meet its expenses prior to
being sold off. Air India was supposed to get Rs. 2,500 crore in this fiscal according to the equity
infusion plan but is facing a shortfall of Rs. 700 crore.
Aviation secretary RN Choubey stated that - “We have obtained government guarantee to enable
AI to borrow up to Rs 6,000 crore for meeting cash deficit in the run-up to disinvestment. Our
expectation is that the AI management will improve fleet utilisation and ontime performance to
improve its valuation prior to the disinvestment.”
The airline has got about Rs 26,000 crore as equity infusion out of the total Rs 31,200-odd crore
promised by the UPA as part of its financial restructuring and turnaround plan. As per reports,
the airlines is sufficient for a few months with the present equity infusion by the government.
The government has started the process of appointing transaction advisers and valuators for AI.
The Department of Investment and Public Asset Management (DIPAM) will manage this
process.
Simultaneously, the government is also working on a plan B for the airlines in case the airline
and its subsidiaries are not able to get the right price from parties that have formally shown
interest in its divestment.More
Posted on: 2017-10-15 09:32:27

Over 57 lakh farmers have submitted their details for the crop loan waiver scheme announced by the Maharashtra government. The last date of the application was September 22. As per the government reports, the total number of farmers who have applied for loan waiver has now crossed the mark of one crore.

This figure contradicts the Chief Minister’s claim that some 89 lakh farmers would benefit from the Rs. 34,000 crore loan waiver scheme.

The scheme was announced on June 24 where all the concerned farmers were asked to register on Aapale Sarkar Online portal. The government had simultaneously asked the banks (including cooperative, public and private) to share their data of farmers accounts having overdue loans. It is stated that the officials will be checking each and every account detail given by the banks with farmers registered on the online portal.

Maharashtra government has decided to waive loan up to Rs 1.50 lakh of a farmer. It has also made it clear that only one member in a family will get the benefit of loan waiver.

The applications of registered farmers are going to be considered for loan waiver scrutiny. After verification, the government will deposit the sanctioned amount into the loan account of the farmer, which will be automatically deducted by the bank to settle the loan.More
Posted on: 2017-09-26 11:34:58

The Reserve Bank of India (RBI) will be regulating all peer-to- peer (P2P) platforms according to a government of India notification.

According to RBI, P2P lending is a form of crowd funding used to raise loans which are paid back with interest. It can be defined as the use of an online platform that matches lenders with borrowers in order to provide unsecured loans.

As per the notification, all the P2P loan platforms will be treated as non-banking financial companies (NBFCs) and therefore will be within the ambit of the RBI. It is most likely that the RBI will be releasing a list of regulations for regulating the P2P lending in the country.

RBI had floated a consultation paper in this connection in April 2016. This paper stated that the “potential benefits of P2P lending promises the stakeholders (borrowers, lenders, agencies etc)and its associated risks to the financial system are too important to be ignored. The regulator had argued in favour of regulating P2P lending entities in the consultation paper, stating that the sector has the potential to “disrupt the financial sector and throw up surprises”.

The notification will help P2P lenders gain official recognition, opening new avenues for fund-raising and business expansion.More
Posted on: 2017-09-26 11:32:34

India’s first high speed rail connection has been initiated with the Indian Prime Minister Narendra Modi and Japanese counterpart, Shinzo Abe laying down the foundation stone for the project which is going to kickstart early next year.
The bullet train line will run along India’s west coast, between Ahmedabad and Mumbai, some 530km to the south.

The project is being funded by a 0.1 % interest loan from Japan and more than four – fifths of the project will be funded by the soft loan from Japan. The loan amount is Rs. 88,000 crore. This is below the market rate of inflation.

As per reports, the estimated cost for the project is between $17 billion and $ 19 billion. This loan aims to solidify the bond between India and Japan to counter China’s influence across Asia.

The Indian Prime Minister thanked Shinzo Abe, who “gave a loan of 88,000 crore rupees” for the project which “will add speed to India’s growth”.

The train will have a maximum speed of 350km/h, more than twice the speed of India’s current fastest train, and will cover over 500km in around two hours. The project is expected to be completed by 2022.

The bullet train was a key part of Modi’s election campaign in 2014 and claims the project will create about 36,000 jobs.More
Posted on: 2017-09-26 11:30:32

The Ministry of Shipping stated on Friday that the Government of India has entered into a USD 76 million loan deal with the Japan International Cooperation Agency (JICA) for a project at Alang-Sosiya ship recycling yards which will help the yards to comply with international safety and environmental regulations.

It was also stated that the total cost of the project will be USD 111 million, out of which USD 76 million will be provided as a soft loan from JICA. Of the remaining amount, USD 25 million will be borne by the Government of Gujarat and the balance of USD 10 million will be shared by the Ministry of Shipping and Government of Gujarat.

The project is being executed by the Gujarat Maritime Board (GMB) and is likely to be
completed by 2022.

This project will attract more business at the recycling facilities at Alang and this will enhance India’s position in the global ship – recycling industry. It will also safeguard the marine and the coastal environment as it will prevent fire accidents in oil and chemical tankers by using advanced decontamination technology.

The government said the project is expected to result in increase in direct employment from 50,000 to 92,000 people and in-direct employment from 1.5 lakh to 3 lakh people.More
Posted on: 2017-09-26 11:28:49

The Uttar Pradesh government stated that they have disbursed an amount of Rs. 7,371 crore as part of their loan waiver scheme for 11.93 lakh small and marginal farmers in the first phase.

The government has announced an amount of Rs. 32,000 crore scheme to waive farm loans of up to Rs. 1 lakh as on or before March 31, 2016. In a statement issued by the state government, it was stated that farm loans of Rs. 10,000 and above have been waived which will benefit 11,27,890 farmers.

Almost 41,690 farmers have benefited from waiver of loans between Rs 1,000 to Rs 10,000. The number of farmers who have been given redemption in the Rs 500 to Rs 1000 bracket are 5,553.

The release said that loans of Re 1 to Rs 100 of 4,814 eligible farmers have been redeemed while 6,895 farmers have been redeemed of money from Rs 100 to Rs 500.

A spokesperson stated that "Where the principal amount has been repaid by the farmer, the interest amount, even if small, has been redeemed under the scheme. In some cases, a wrong impression has been created that only a meagre amount has been redeemed”.More
Posted on: 2017-09-26 11:27:07

Imagine the shock of a marginal farmer, Ishwar Dayal from Bhartana in Etawah, Uttar Pradesh
who was handed over a certificate wherein an amount of 19 paise was waived as part of his
outstanding farm loan.

Many farmers were left reeling under shock where they were handed similar certificates at a
programme held at the district headquarters of Etawah. Another farmer, Rama Nanda got Rs.
1.79 waived while Munni Lal Bholi got his outstanding loan of Rs. 2 waived.

On Sunday, some farmers at Hamirpur had loans waived from Rs. 10 to Rs. 215. There has been
shock and genuine relief in equal measures though. In Etawah, about 7,000 farmers were handed
certificates and had their loan waiver ranging from Rs. 100 to Rs. 1,000.

While the Opposition criticized the government, the BJP government stated that they have
waived the actual amount owed by the farmers to the banks. A spokesperson stated - “Where is
the surprise if the government has distributed the certificate to a farmer waiving Rs 100 or even less if that is the amount the farmer actually owed to the bank?” he asked. “After all, we cannot make his dues bigger or smaller. There are also farmers who have had Rs 90,000 and more of their loans waived”.More
Posted on: 2017-09-17 00:15:48

UCO Bank, a public sector lender has started the process of selling bad loans worth Rs. 2,420
crores from 27 accounts as per a tender document stated on its website.

UCO Bank is under the Reserve Bank of India’s prompt corrective action and it has invited
expressions of interest from asset reconstruction companies and other financial institutions to
buy its bad loans. The cut off date for submitting bids is September 11.

The bank is also resolving its list of accounts named in the second list of defaulters in order to meet the deadline given by the RBI which is December 13. As per the RBI diktat, lenders have to meet the deadline to formulate plans for at least 28 accounts on the list and in the event that they do not, they will have to initiate bankruptcy proceedings against these accounts.

As per reports, UCO Bank is selling the loans from its corporate loan segment and is not limited to any particular sector. These accounts have been NPAs for over two and a half years now.

“As part of a turnaround strategy, resolution through sale of accounts remains a key option for
the bank,” a source was quoted as saying.More
Posted on: 2017-09-12 17:55:10

The Maharashtra state government has received 48 lakh applications for the Rs. 34,000-crore farm loan waiver scheme which includes 14,000 applications from Mumbai. There are applications from other states such as Uttar Pradesh, Bihar and Karnataka as well.

The government plans to do a thorough scrutiny to short-list those eligible for the waiver. An inquiry was announced because of the high number of applications received from the farmers. The government has set up 25,000 centres for farmers to register for the scheme, which will continue till mid-September. The first list of the eligible farmers will be announced by September 30.

As per the government, 80% of the applications received were sent for processing to different state government departments. The highest number of applications came from Jalgaon with 2.86 lakh applications. 2.46 lakh applications were received from Ahmednagar, 1.8 lakh from Aurangabad, 1.59 lakh from Beed, 1.16 lakh from Buldhana, 1.09 lakh from Chandrapur and 1.01 lakh from Jalna.

Maharashtra is the fourth State after U.P., Karnataka and Punjab to announce farm loan waivers. With over ₹4 lakh crore in debts, a recent report by India Ratings warned that the loan waiver scheme will push the State’s fiscal deficit to 2.71% of the GSDP in 2017-18.More
Posted on: 2017-09-08 00:29:36

Since the Maharashtra government led by BJP Chief Minister Devendra Fadnavis has announced the farm loan waiver in the state, almost 2.24 lakh farmers in the Kolhapur district have submitted farm loan waiver forms against the government’s claims of 80,944 beneficiaries in the district.

The office of the Chief Minister (CMO) tweeted the list of beneficiaries as per their districts under the Chhatrapati Shivaji Maharaj Shetkari Sanman Yojana 2017. As per this data, 80,944 farmers in the Kolhapur district can avail the benefits of the loan waiver.

The situation has become quite chaotic as the actual number of forms submitted has crossed the figure published by the state government. Arun Kakade, Kolhapur district deputy registrar (DDR), said, "Around 2.24 lakh farmers have submitted loan waiver forms till August 30. The total number of registrations for loan waiver is three lakh."

The farm loan waiver was declared by the Maharashtra state government in June 2017 after massive protests in the state for around 36 lakh farmers in the state. However, the scheme has yet to be implemented as there are many hiccups surrounding the demarcation of the actual beneficiaries of the farm loan waiver.More
Posted on: 2017-09-04 23:44:25

The Reserve Bank of India (RBI) has increased its focus in targeting serial loan defaulters and has now shifted its focus on to nearly 35 to 40 highly- leveraged companies. A list of 28 of these companies that could face the heat has been revealed. Though these companies will not be facing immediate bankruptcy proceedings, they will be sent to the National Company Law Tribunal (NCLT) for proceedings if the banks do not find a resolution within 3 months.

The companies featuring in the list are Videocon Industries, Videocon Telecom, JP Associates, Uttam Galva, Visa Steel, Monnet Power, Ruchi Soya, Orchid Chemical, IVRCL, Shakti Bhog, Nagarjuna Oil,Jai Balaji, Jayswal Neco, Soma Enterprises, Essar Projects, Unity Infra, Castex, East Coast Energy, SEL Manufacturing, Asian Colour Coated Ispat, Transstroy India, Ushdev International, Anrak Aluminium,BILT Graphic Paper Products Limited, Coastal Projects, GET Power Limited, Wind World (India) Limited.

The list of defaulting companies have taken loans from all banks and the State Bank of India has about 26 defaulters in its list. The cut-off date for these companies is June 2016 pursuant to which their accounts have turned into non-performing assets (NPAs).

Banks have been given time till December 13 to make sure a resolution is found for these accounts.

The total amount of debt from these companies is likely to be over Rs 2 lakh crore.More
Posted on: 2017-09-04 15:30:32

Bajaj Finserv Ltd. has announced the lowest ever interest rates on home loans in its limited period offer which is 8.35 percent for a home loan above Rs. 75 lakhs.

This offer is available to all customers who apply for new home loans and for customers seeking home loan balance transfer between August 29 and September 4, 2017. Bajaj Finserv will offer a special interest rate of 8.40 percent for customers availing balance transfer, along with a top-up loan.

The rate for home loan amount of Rs. 50 Lakhs to Rs. 74.99 Lakhs is 8.45 percent and for a loan below Rs. 50 Lakhs, the interest rate is 8.50 percent.

Added advantages such as instant approvals, 3 EMI Holiday, speedy disbursal and more facilities are provided for the customers. The 3 EMI Holiday provides the customers with the option to start repaying the loan 3 months post the disbursal.

The customers can check their eligibility online and calculate their EMI through the home loan EMI calculator by choosing their repayment tenure. The loan is then approved in 5 minutes and a
representative contacts the customer immediately. The officials then offer a home collection of the requisite documents like identity proof, address proof, income details and bank details after which the loan is disbursed to the customer.More
Posted on: 2017-09-04 15:22:45

The Union Bank of India, which is the fifth largest bank in the country has launched a novel way to help its loan recovery process – it has launched an in-house app.

This app was launched almost two weeks ago which will assist the recovery team of the bank to identity and know the loan account customers in a particular area who have defaulted on loans or are on the verge of doing so. The whole idea behind this technology driven initiative is to prevent loans from becoming non-performing assets.

This app will assist the bank to target recovery of loan up to Rs. 5 crore and for loan of Rs. 50 crore and up, a separate Difficult Assets Recovery Team (DART) is being set up. The bank is aiming to recover at least Rs. 4000 crore by end of this fiscal.

The bank currently has total non-performing assets of Rs. 37,000 crore. Out of this Rs. 9,000 crore have been availed by borrowers up to Rs 50 crore.

The benefits of the app is in the fact that there is a built in compromise scheme for a particular borrower which can be offered by the recovery team and close the loan account once payments are made. This prevents long procedural delays.More
Posted on: 2017-08-30 17:02:50

Diagnostics and pathology lab, Oxxy Healthcare has started providing medical loans to its existing as well as potential users as it has a network of over 2 lakh hospitals, diagnostics and pathology labs. It is valued at $2.7 billion which is the highest that a start-up has achieved in three years. The medical loan facility is aimed to provide affordable solutions to over 1.5 crore people.

Medical loans can be availed on submission of a credible income proof and are presently utilized for elective surgeries.

Oxxy is offering services to have affordable options for its customer base by getting them up to 50% discount on medical expenses to getting all the medical expenditure to be paid in easy monthly installments.

Though health insurance is more popular than medical loans, not all can afford it. Medical loans can be used to pay for medical expenses while the health insurance cover is limited. Another advantage of medical loan is that there is no need to put up collateral or deposit. A personal medical loan ensures that you get quality medical care with no delay.

People can call on 9999000102 or log in to www.oxxy.in and submit details after which they can get a fixed affordable health care solution in the next four working hours.More
Posted on: 2017-08-23 23:45:58

Wilful defaulters owe 27 percent of the total amount owed to public sector banks to the country’s largest lender, SBI. As of March 31, almost 1,762 wilful defaulters owed Rs. 25,104 crores to SBI which has now put a pressure on the bank’s balance sheet.

The next bank in the list is Punjab National Bank with 1,120 wilful defaulters having outstanding non-performing assets (NPAs) or bad loans of Rs. 12,278 crore.

These two banks account for Rs 37,382 crore or 40 percent of the total outstanding loans in the public sector banking field which has increased the total outstanding loans due to public sector banks to Rs. 92,376 crores (as per the Finance Ministry data).

The total outstanding loans by wilful defaulters rose to Rs. 92,376 crore at the end of financial year 2016-17 from Rs. 76,685 crore at the end of last fiscal 2015-16 which is up by 20.4 per cent.

Out of 8,915 cases of wilful defaults, banks have filed FIR (First Information Report) in 1,914 cases with outstanding loans of Rs. 32,484 crore.

During 2016-17, 27 public sector banks, including SBI and its five associates had written off Rs. 81,683 crore, the highest in the last five fiscals. The amount was 41 percent higher than that in the previous fiscal.More
Posted on: 2017-08-22 22:04:00