NBFC - NewNerve

Niro Crosses Rs 1,000-Cr Loan Disbursals: A Remarkable Milestone in Consumer Lending

22May

By AnkitNo Comments

Fintech, Digital Lending, Lending, Startups

Niro Crosses Rs 1,000-Cr Loan Disbursals: A Remarkable Milestone in Consumer Lending

Niro, the embedded consumer-lending platform, has achieved a significant milestone by surpassing Rs 1,000 crore ($125 million) in overall disbursals since its launch in 2022. Within just 27 months, Niro has transformed the lending landscape, offering personal loans ranging from Rs 30,000 to Rs 5 lakh. Let’s delve into the details of this remarkable achievement and what it means for the fintech industry. The Journey to Rs 1,000 Crore: Niro’s journey began with a vision—to make credit accessible to all, especially through non-traditional channels. In the first 20 months, Niro disbursed Rs 500 crore, demonstrating its rapid growth. The subsequent Rs 500 crore was disbursed in just over seven months, highlighting Niro’s agility and customer demand. Strategic Partnerships: N...

NBFC Leaders Advocate Responsible Lending and Equitable Co-Lending with Banks

29Apr

By AnkitNo Comments

Banking, BFSI, Digital Lending, Lending, Microfinance, NBFC

NBFC Leaders Advocate Responsible Lending and Equitable Co-Lending with Banks

Non-banking finance companies (NBFCs) are at the forefront of financial inclusion, bridging gaps in credit access for underserved segments. In recent discussions at the ETBFSI NBFC Connect’24 Summit in Chennai, industry leaders underscored the importance of responsible lending practices and equitable partnerships in co-lending arrangements with banks. Responsible Lending Practices Ashish Mehrotra, MD & CEO of Northern Arc Capital, emphasized the significance of reaching the last mile through partnerships. He stated, “As long as we are able to reach the last mile in partnership/co-lending, we bring more value to the ecosystem.” This approach ensures that credit reaches even the most remote borrowers. NBFCs adopt a calibrated and responsible underwriting process. T...

Co-lending Model: A Collaborative Approach to Financial Inclusion in India, 2024

25Apr

By Ankit1 Comment

Blog, Banking, Digital Lending, Lending, Microfinance, NBFC

Co-lending Model: A Collaborative Approach to Financial Inclusion in India, 2024

The co-lending model has emerged as a significant innovation in the Indian financial landscape, aiming to bridge the credit gap and promote financial inclusion. This model involves collaboration between banks and non-banking financial companies (NBFCs), leveraging their respective strengths to offer wider access to credit for underserved segments. Stakeholders and their involvement: Banks: Contribute their robust risk management expertise, regulatory compliance, and access to low-cost funds. They typically originate the loan and conduct due diligence on borrowers. NBFCs: Bring their domain expertise in specific sectors, strong customer relationships, and agility in loan processing. They often handle customer acquisition, credit assessment, and loan servicing. Borrowers: Benefit...

Aditya Birla’s Financial Businesses Set to Soar: Expects 19%-21% Growth in 3-5 Years

17Apr

By Ankit1 Comment

NBFC, BFSI

Aditya Birla’s Financial Businesses Set to Soar: Expects 19%-21% Growth in 3-5 Years

In an exciting development for the financial sector, Aditya Birla Group, one of India's leading conglomerates, has announced its optimistic outlook for the growth of its key financial businesses. Chairman Kumar Mangalam Birla unveiled the group's projections, stating that they anticipate a remarkable compounded annual growth rate (CAGR) of 19% to 21% over the next three to five years. This revelation signals a strong commitment to expanding their presence and influence in the financial services industry. Announcement from Aditya Birla Capital During a recent event in Mumbai, Aditya Birla Capital, the financial services arm of the group, introduced a digital application called ABCD. This innovative platform aims to attract a substantial customer base, with a target of acquiring 30 million...

Bajaj Housing Finance Initiates IPO Preparation, Aims for $9-10 Billion Valuation

27Mar

By AnkitNo Comments

NBFC, Wealthtech

Bajaj Housing Finance Initiates IPO Preparation, Aims for $9-10 Billion Valuation

Bajaj Housing Finance Gears Up for IPO, Targets Multi-Billion Dollar Valuation Bajaj Housing Finance, a subsidiary of Bajaj Finance Ltd, has commenced preparations for an initial public offering (IPO) with the goal of achieving a valuation between $9 billion and $10 billion. The move comes as a result of regulatory requirements imposed by the Reserve Bank of India (RBI) on "upper layer" non-banking financial companies (NBFCs) to list within three years of identification. Let's delve into the details of this upcoming IPO. Preparations for IPO: Bajaj Housing Finance has reportedly entered into preliminary discussions with various investment banks regarding the potential IPO. The company aims to raise approximately $900 million to $1 billion through the IPO, considering the minimum dilutio...

RBI’s Risk Weight Hike: Implications for Incremental Bank Lending to NBFCs

27Mar

By Ankit2 Comments

Digital Lending, NBFC

RBI’s Risk Weight Hike: Implications for Incremental Bank Lending to NBFCs

The Reserve Bank of India (RBI) recently implemented a significant increase in risk weight for bank exposures to Non-Banking Financial Companies (NBFCs). This move is expected to have a notable impact on incremental bank lending to the NBFC sector. In this article, we will explore the implications of the RBI's decision and discuss the potential consequences for the lending landscape. Key Points: Decrease in Bank Loans to NBFCs: As of January 2024, outstanding bank loans to NBFCs stood at Rs 15.03 trillion. However, in FY23, banks extended only Rs 3.08 trillion to finance companies, a significant decline compared to the previous year's Rs 73,831 crore. This downward trend can be attributed to various factors, including the tightening of risk weights by the RBI. Projections for FY25: ...

Exploring NBFC Connect 2024: India’s Premier NBFC Summit

19Mar

By AnkitNo Comments

Events, NBFC

Exploring NBFC Connect 2024: India’s Premier NBFC Summit

NBFC Connect Summit, 2024: In the dynamic landscape of India's financial sector, the Non-Banking Financial Companies (NBFCs) play a crucial role in driving economic growth and providing financial services to various segments of the population. One event that brings together industry leaders, experts, and stakeholders to discuss emerging trends, collaborations, and innovations in the NBFC sector is the NBFC Connect Summit. In this blog post, we will delve into the key highlights and significance of the NBFC Connect 2024 Summit. Event Overview: The NBFC Connect Summit, organized by ET BFSI (Economic Times - Banking and Finance Services Intelligence), serves as a platform for knowledge-sharing, networking, and collaboration within the NBFC ecosystem. The upcoming edition, NBFC Connect 20...