A recent report predicts that Indian banks will witness a credit growth of 12.5 per cent growth in the financial year 2025. Despite this positive outlook, using outdated tools and processes, in particular, puts lenders at risk, especially as they attempt to scale faster. For instance, they may experience a growth of loan delinquencies and […]
Loan Against Security: 7 Key Metrics Every Lender Should Monitor
With the digital economy gaining full steam and RBI’s regulatory improvements, loan against security (LAS) is set to become a mainstream financing tool in India’s transforming financial ecosystem. The seamless integration of demat accounts with lending platforms has transformed LAS into a quick, convenient borrowing solution for India’s growing investor base. In November 2024, retail […]
Understanding MSME Loans: Opportunities and Challenges for Lenders
Micro, Small, and Medium Enterprises (MSMEs) are a significant part of the Indian economy. The export value of MSME-related products for the financial year 2024-25 alone constitutes 45.79% of all India exports. However, despite their importance, MSMEs face significant challenges in finding financial support. According to an International Finance Corporation (IFC) report, the barriers include: […]
Cloud-Based vs. On-Premises Loan Origination Software: Pros and Cons for Financial Institutions
Modern loan origination software has eliminated historical barriers through powerful integrations, enhanced functionality, and optimised costs. These advances have transformed conventional banking platforms characterised by complex setups and rigid infrastructure. However, one critical decision financial institutions face when adopting such software is choosing between cloud-based and on-premises loan origination software. Each option comes with its […]
Understanding the Growing Demand for Study Abroad Loans
Global education dreams often clash with financial realities. While over 1.3 million Indian students are studying abroad in 2024, many found their ambitions constrained by the staggering costs. A typical master’s program at a US university now demands an investment of ₹24 lakhs to ₹96 lakhs, placing international education beyond the reach of most middle-income […]
Understanding Collateral Valuation Strategies in Corporate Loan Underwriting
In corporate loan underwriting, collateral acts as a safety net for lenders, reducing the risk of loss, and making sure that the lender can recover their funds if a borrower defaults. Typically, the size of the loan a lender provides ranges from 70% to 90% of the collateral’s value. This significant margin shows the importance […]