Lending – EZY Eating Food, Diet & Protein Bars http://ezyeating.com/ Nutrition Ideas Sun, 18 Sep 2022 12:19:42 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://ezyeating.com/wp-content/uploads/2021/05/default.png Lending – EZY Eating Food, Diet & Protein Bars http://ezyeating.com/ 32 32 Public sector banks boost digital lending under EASE reform agenda https://ezyeating.com/public-sector-banks-boost-digital-lending-under-ease-reform-agenda/ Sun, 18 Sep 2022 12:19:42 +0000 https://ezyeating.com/public-sector-banks-boost-digital-lending-under-ease-reform-agenda/ Public sector banks are rapidly adapting to digital means as they have allowed digital lending from ₹83,091 crores in the fiscal year ending March 2022. As part of the EASE 4.0 reforms, public banks have been asked to focus on digital lending, co-lending with non-banking businesses, agriculture finance and technology resilience for 24×7 banking. The […]]]>

Public sector banks are rapidly adapting to digital means as they have allowed digital lending from 83,091 crores in the fiscal year ending March 2022.

As part of the EASE 4.0 reforms, public banks have been asked to focus on digital lending, co-lending with non-banking businesses, agriculture finance and technology resilience for 24×7 banking.

The Enhanced Access and Service Excellence (EASE) program, spearheaded by the Association of Indian Banks (IBA), has also focused on data analytics, automation and digitalization.

Launched in 2018, the EASE program sets a common reform agenda for public sector banks each year. EASE aims to drive new era reforms in public sector banks (PSBs) to improve profitability, asset quality, customer service and digital capabilities.

The fourth edition of EASE focused on simplified and collaborative banking technology and Finance Minister Nirmala Sitharaman praised the top performing banks on various metrics, according to an IBA statement.

Bank of Baroda received the top award among all PSBs for the best overall performance on PSB Reforms EASE Agenda 4.0. State Bank of India and Canara Bank ranked second and third respectively.

Indian Bank has established itself as the “Top Improver” among all PSBs.

Canara Bank won the top prize in the Institutionalizing Prudent Banking category, while in the Governance and Results Focused HR category, Union Bank of India was chosen as the leader last week.

Punjab National Bank came second in the Tech-enabled Banking category, while Punjab & Sind Bank took second place in the Top Improvement category.

As part of the EASE reforms, banks have achieved 6,597 crores of co-loans through partnerships with NBFCs in FY22. Additionally, there was onboarding of 9.4 crores of customers on mobile banking platforms and 79% of financial transactions carried out on mobile and Internet banking platforms.

The agenda for the fifth edition of EASE was unveiled earlier this year by the Minister of Finance, he said, adding that the reform agenda has now been extended to EASENext with the introduction of the program three-year strategic roadmap.

EASE 5.0 will continue to focus on driving an enhanced digital experience as well as data-driven, integrated and inclusive banking services across all banks, he said.

The three-year strategic roadmap will offer each PSO the opportunity to define its own reform path, contextualized to its starting position and strategic priorities, he added.

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8 tough questions to ask before lending money to family or friends https://ezyeating.com/8-tough-questions-to-ask-before-lending-money-to-family-or-friends/ Wed, 14 Sep 2022 15:47:00 +0000 https://ezyeating.com/8-tough-questions-to-ask-before-lending-money-to-family-or-friends/ This article is reproduced with permission from NextAvenue.org. In these tough times marked by high inflation and a contentious recession, many households are feeling cash-strapped and pressured by rising spending and interest rates. The first line of defense for many is asking family and friends for money to stay afloat. As a financial planner, I […]]]>

This article is reproduced with permission from NextAvenue.org.

In these tough times marked by high inflation and a contentious recession, many households are feeling cash-strapped and pressured by rising spending and interest rates. The first line of defense for many is asking family and friends for money to stay afloat.

As a financial planner, I have seen many of my fellow first generation wealth builders and sandwich generation wealth protectors grapple with the precarious decision of whether or not to lend money to family members and friends.

FOG (fear, obligation and guilt) money and heartstrings cloud their judgment as they consider the loan decision. They go from wanting to lend money and get loved ones back on their feet to struggling to trust someone who is already in debt.

Don’t miss: My girlfriend and I sold our house in Florida. Our profit of $200,000 was transferred to his account. She refuses to give me my fair share. What’s my next move?

Think about it before lending money

If you’re considering lending to a family member or friend, here are some questions you should ask yourself before taking the leap:

  • Are you ready to lose money? Lending money to anyone is risky, especially if it is not a bona fide business transaction. To keep repayment expectations flexible, you may need to view the funds “as a gift instead of a loan,” as I explained in a recent CNBC segment.

  • Are you ready to let the money jeopardize your relationship with the borrower?

  • What is the emotional capacity of the future borrower when handling business with family or friend?

  • Will you be able to control your emotions and interact calmly with a delinquent borrower during your next family reunion or vacation?

Shakespeare opined on keeping drama out of the relationship equation stating, “Neither a borrower nor a lender often loses both himself and a friend.”

Also see: My friend cleans, cooks and takes care of my child. I pay him $50 a day. Am I taking advantage of her?

Questions to Ask a Borrower

At the same time, you must be prepared to ask important questions of the potential borrower. Conversations about money are difficult for even the most secure relationships, and your new role as a lender requires you to be comfortable asking relevant questions such as:

  • Why do you need money? The answer to this question should clearly define the objective and define the terms of the engagement.

  • What is your plan to repay the loan? This will give you insight into the intent and strategy of the potential borrower.

  • Is your credit score 700 or higher? If not, what affected your score? The answers to these questions should open a window on the situation and the behavior of the potential borrower.

  • Why do you think I have money to lend? The answer will signal what the potential borrower thinks of you and your financial situation and set an ambitious goal for them.

If you don’t feel comfortable asking the questions or the potential borrower is reluctant to provide answers, you may both realize that a loan from you is out of the question.

Also see: Am I stupid to keep my IRA invested in stocks?

Always get it in writing

If you decide to take on the role of lender after answering the essential questions above, consider codifying your agreement. Draw up a legally binding promissory note to include terms such as total amount borrowed, interest rate, repayment schedule, overdue payment fees, and default terms.

Add the loan to your list of assets on your net worth statement and add language to your will or trust to ensure that your estate will collect your investment upon your death. To help with its legality, find out if your employer offers a legal benefits service or secure online resources such as RocketLawyer, Upwork, and Pigeon Loans.

Don’t forget the taxman

Family loans also have tax implications. The IRS issues monthly guidelines for setting interest rates on family loans, known as Applicable Federal Rates (AFR). The AFR rate ensures that personal lenders avoid pricing below market interest rates to avoid inheritance and gift taxes.

See: You’re not too young to make a will. Take care of your family with a simple “I love you, honey” estate plan

Although you may not consider yourself a wealthy person, it pays to incorporate a reputable framework to guide your loan terms. Also, it should be noted that loan interest is taxable income for the lender. Consult your tax advisor on the best way to set interest rates and report interest income.

When asked to borrow your money, think carefully about what is really at stake and the reward received by both parties for the risk taken.

Certified Financial Planner Lazetta Rainey Braxton is co-CEO and co-founder of Wealth Partners 2050 and CEO and Founder of Lazetta & Associates. She is passionate about amplifying diversity, inclusion, equality and belonging in the financial planning profession and does so through financial planning, public speaking , writing, consulting and coaching. She was named 2021 Crain’s New York Business Notable Black Leader and Executive as well as one of Investopedia’s Top 10 Financial Advisors in 2020 and 2021. She is on a mission to create wealth for the common good.

This article is reproduced with permission from NextAvenue.org© 2022 Twin Cities Public Television, Inc. All rights reserved.

More from Next Avenue:

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Cardano’s First NFT Lending Platform Announces $25,000 Bounty Ahead of Mainnet Launch https://ezyeating.com/cardanos-first-nft-lending-platform-announces-25000-bounty-ahead-of-mainnet-launch/ Sat, 10 Sep 2022 16:00:17 +0000 https://ezyeating.com/cardanos-first-nft-lending-platform-announces-25000-bounty-ahead-of-mainnet-launch/ Aada FinancesCardano’s first NFT lending and borrowing protocol, is holding a bug bounty contest ahead of its mainnet launch scheduled for September 13. 🎉 @AadaFinance announced its $25,000 Bug Bounty program.🏆 Your contribution to finding bugs would ensure the security of the users’ fund and the prosperity of Cardano DeFi as well as the whole […]]]>

Aada FinancesCardano’s first NFT lending and borrowing protocol, is holding a bug bounty contest ahead of its mainnet launch scheduled for September 13.

As noted in a blog post, the reward size is $25,000 for a critical smart contract vulnerability.

After months of using the public testnet, Aada Finance, a digital asset lending platform, is now ready to launch Aada V1, which would allow users to lend and borrow assets from each other using a technique non-fungible token bond (NFT) special.

Ads

Aada Finance intends to launch ahead of the Vasil upgrade which is expected to take place on September 22. In a recent tweet, Cardano founder Charles Hoskinson talked about the upcoming Vasil as something that would enable the launch of new dApps.

“It’s an example of the power of Vasil coming this month. The new features greatly improve many different dApps and allow new dApps like Djed to be deployed on Cardano. This is just the beginning. EUTXO and Plutus are the gifts that keep on giving,” he wrote.

According to recent updates from IOG, 50% of the top 12 exchanges by liquidity, namely Binance, MEXC, Bitrue, AAX, WhiteBIT and BKEX, have indicated that Vasil is ready. Coinbase and three other top 12 exchanges are updating their nodes. Ten other exchanges have indicated that they are ready for Vasil, while several are in the process of updating their nodes. Nearly 50% of major Cardano dApps have “tested” status in pre-production while others remain “in testing”.

Cardano Founder Praises Loyalty of Crypto Communities

Founder of Cardan, Charles Hoskinsonwas recently drawn to data shared by social intelligence platform LunarCrush, which indicated that cryptocurrency social contributors had fallen 0.71% over the past six months, suggesting little or no growth in participants in the crypto market.

Hoskinson thinks this is something to be welcomed, as most massive market downturns are usually followed by double-digit drops in engagement and contribution. He added that “the fact that it remains stable means that the crypto communities as a whole are loyal and have a long-term mindset.”

At press time, ADA was trading up 4.48% at $0.513.

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Live Oak Bank Announces Lending Partnership with Ramp https://ezyeating.com/live-oak-bank-announces-lending-partnership-with-ramp/ Wed, 07 Sep 2022 15:15:00 +0000 https://ezyeating.com/live-oak-bank-announces-lending-partnership-with-ramp/ WILMINGTON, NC, Sept. 07, 2022 (GLOBE NEWSWIRE) — Live Oak Bank announces that it has been named a small business lending partner for Ramp, the financial automation platform and business card designed to help businesses to spend less. Live Oak, the nation’s leading Small Business Administration (SBA) lender, will be a new referral channel for […]]]>

WILMINGTON, NC, Sept. 07, 2022 (GLOBE NEWSWIRE) — Live Oak Bank announces that it has been named a small business lending partner for Ramp, the financial automation platform and business card designed to help businesses to spend less.

Live Oak, the nation’s leading Small Business Administration (SBA) lender, will be a new referral channel for Ramp clients seeking capital for long-term growth, such as acquiring a new business, growth of their existing business and real estate purchases.

“We are excited to partner with Ramp to bring SBA loans to a broader customer base,” said Live Oak Bank President Huntley Garriott. “Furthermore, this partnership is another step in our integrated banking journey to align ourselves with companies that share our belief that business banking services can be better and more efficiently delivered to American entrepreneurs.”

Ramp serves 7,000 business customers with next-generation financial tools that help businesses digitally manage credit cards, expenses, invoices, and business accounting with customizable expense rules tailored to their business needs.

Live Oak will complement Ramp’s payment cards and expense management solutions, providing customers with growth capital that includes great terms and a streamlined experience. Live Oak’s Preferred Lender Status (PLP) with the SBA provides an easier, faster lending process with competitive terms and rates.

“With Live Oak Bank, we are giving our clients even more flexibility and options for long-term debt. Like Ramp, Live Oak is an innovator, unafraid to challenge the status quo and tackle head-on the issues that businesses continually face,” said Ben Alderman, Head of Financial Partnerships at Ramp.

Ramp customers interested in learning more about Live Oak’s loan partnership can click here.

About Live Oak Bank
Live Oak Bank, a subsidiary of Live Oak Bancshares, Inc. (Nasdaq: LOB), is a digital-focused, FDIC-insured bank that serves customers across the country. Live Oak is taking a revolutionary spin on service and technology to redefine banking. Our products help customers buy, grow and grow their business, as well as high-yield savings and CD products to grow their hard-earned money. To learn more, visit www.liveoakbank.com.

Contact:
Claire Parker, Senior Vice President of Corporate Communications
910.597.1592
claire.parker@liveoak.bank

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2008 again? BofA just launched a test of mortgages with no down payment and no closing costs for minority communities https://ezyeating.com/2008-again-bofa-just-launched-a-test-of-mortgages-with-no-down-payment-and-no-closing-costs-for-minority-communities/ Sat, 03 Sep 2022 10:00:00 +0000 https://ezyeating.com/2008-again-bofa-just-launched-a-test-of-mortgages-with-no-down-payment-and-no-closing-costs-for-minority-communities/ 2008 again? BofA just launched a test of mortgages with no down payment and no closing costs for minority communities A major US bank has launched a new program to help minority first-time buyers finance the purchase of a home without down payment or closing costs. It’s a boon for buyers at a time when […]]]>

2008 again? BofA just launched a test of mortgages with no down payment and no closing costs for minority communities

A major US bank has launched a new program to help minority first-time buyers finance the purchase of a home without down payment or closing costs. It’s a boon for buyers at a time when rising interest rates and low home inventory have stacked the deck against them.

It is also the latest response to longstanding criticism that banks favored white borrowers.

Bank of America’s test plan is being rolled out in Los Angeles, Dallas, Detroit and Charlotte and targets predominantly minority neighborhoods in those cities. It offers loans to minority buyers without the need for a down payment, closing costs or private mortgage insurance (PMI), a usual additional cost for buyers who pay less than 20% of the purchase price of the house. home.

Basically, the program also does not require any minimum credit score, with eligibility instead focusing on the borrower’s solid track record of rent payments and regular monthly bills like utilities and phone. Before applying, buyers must complete a homebuyer certification course that advises them on ownership responsibilities and other considerations.

But the move quickly drew mixed reactions online, as Bank of America (and other major lenders) have come under fire in the past for predatory lending practices, particularly when lending to minority groups.

Don’t miss

Loans with no down payment – a timely boost

For buyers in Bank of America’s test cities, loans come at a critical time.

Rising interest rates are making mortgages more expensive and creating downward pressure on lenders to ensure their loans are as risk averse as possible. Bank of America’s program aims to break that by freeing qualified applicants from down payments, credit score standards and PMI costs.

This lowers many homeownership barriers for buyers in communities struggling with institutional lending that often favors white borrowers.

“Homeownership strengthens our communities and can help individuals and families build wealth over time,” said AJ Barkley, Bank of America’s neighborhood and community lending manager.

Homeownership among white households was 72.1% in 2020, according to the National Association of Realtors — compared to 51.1% for Hispanic households and 43.4% for black households.

And black borrowers are denied at twice the rate of all borrowers, according to a recent report by LendingTree.

Bank of America’s plan adds to its $15 billion program that provides closing cost and down payment assistance to low-income buyers and another initiative to provide $15 billion in mortgages to low to middle income buyers through mid-2027.

Equity risk

However, critics of the program were quick to point out that it could backfire and potentially harm the communities it is meant to help.

The 2008 housing crisis – which was heavily driven by risky lending to unqualified buyers – taught hard lessons to lenders who found themselves stuck with foreclosed homes after buyers stopped paying for properties that they could never afford.

The consequences were devastating: lenders inherited foreclosed homes and buyers saw their credit ratings drop.

It’s likely that at least some of the borrowers in Bank of America’s new program would be considered “subprime” under ordinary lending rules – reminiscent of the ugliest days of the 2008 crisis and providing critics with talking points easy. Credit agency Experian, for example, considers borrowers with credit scores between 580 and 669 as subprime.

And while credit scores aren’t always an accurate barometer of a buyer’s purchasing power or ability to make timely payments, advocates worry that the interest rates required to make up for the low bar set by the lender does not put minority buyers in check.

What to read next

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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Bank loans extend growth streak in July as borrowing costs remain low https://ezyeating.com/bank-loans-extend-growth-streak-in-july-as-borrowing-costs-remain-low/ Wed, 31 Aug 2022 05:13:00 +0000 https://ezyeating.com/bank-loans-extend-growth-streak-in-july-as-borrowing-costs-remain-low/ MANILA, Philippines — Credit growth rose for the 12th straight month in July as it continues to benefit from lower borrowing costs due to pandemic-era rate cuts from the Bangko Sentral ng Pilipinas. Excluding interbank loans, outstanding loans issued by major banks rose 12 percent year-on-year in July to reach 10.2 trillion pesos, the BSP […]]]>

MANILA, Philippines — Credit growth rose for the 12th straight month in July as it continues to benefit from lower borrowing costs due to pandemic-era rate cuts from the Bangko Sentral ng Pilipinas.

Excluding interbank loans, outstanding loans issued by major banks rose 12 percent year-on-year in July to reach 10.2 trillion pesos, the BSP reported on Wednesday. The increase was unchanged from the growth recorded in June.

Over one month, credit rose slightly by 0.6%.

That said, more money has flowed into the national economy. A separate BSP report found that M3, a measure of money supply, grew 7% year-on-year in July to reach 15.4 trillion pesos, although slower than the 7.2% annual growth recorded on July. last month.

“Bank lending continues to benefit from previous BSP easing. Growth momentum has solidified and ensures expansion over the coming quarters. Bank lending is expected to remain expanding as the economy reopens and demand credit remains healthy,” said Nicholas Mapa, senior economist at ING Bank in Manila.

Credit growth is crucial for an economy that depends on consumption. When bank lending plummeted in 2020 after lenders tightened credit standards amid fears borrowers would be saddled with debt, the BSP cut interest rates to spur loan growth in an economy national in lack of consumption.

The move paid off, with credit returning to growth in August last year after 8 straight months of contraction. But with inflation spoiling economic growth by stifling consumption again, the BSP began its tightening cycle in May and has since reversed all the rate cuts it had made at the start of the health crisis.

The benchmark rate currently stands at 3.75% after the central bank raised it by a total of 175 basis points.

Seeking comment, Domini Velasquez, chief economist at China Banking Corp., said the domestic economy will be able to cushion the BSP’s aggressive rate hikes.

“Although the BSP has been more aggressive in raising its key rates recently, we expect the economy to have sufficient momentum to absorb the monetary tightening,” she said in a Viber message.

Disaggregated, central bank data showed most of the growth came from lending to manufacturing activities, which rose 11.6% year-on-year in July. Within this segment, lending to real estate, manufacturing, and information and communication activities experienced double-digit growth.

Consumer credit continued to rise, rising 14.7% year on year in July.

Velasquez noted that bank lending will continue to improve given that it will take more than six to 12 months for recent rate hikes to seep into the economy.

“On the other hand, we believe that going forward, consumer lending should ease in an environment of high inflation and high interest rates. economic activities,” she added.

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How automation can help banks tame the “roller coaster” of home lending https://ezyeating.com/how-automation-can-help-banks-tame-the-roller-coaster-of-home-lending/ Fri, 26 Aug 2022 16:40:20 +0000 https://ezyeating.com/how-automation-can-help-banks-tame-the-roller-coaster-of-home-lending/ Rising interest rates have led to a drastic drop in demand for home loans and refinancing, leading to a wave of layoffs in the mortgage divisions of some of the nation’s largest banks, including JPMorgan Chase and Wells Fargo. But the cyclical nature of the mortgage industry doesn’t mean lenders should be forced to respond […]]]>

Rising interest rates have led to a drastic drop in demand for home loans and refinancing, leading to a wave of layoffs in the mortgage divisions of some of the nation’s largest banks, including JPMorgan Chase and Wells Fargo.

But the cyclical nature of the mortgage industry doesn’t mean lenders should be forced to respond with massive hiring or layoffs as demand for mortgages fluctuates, said Suzanne Ross, director of mortgage products at Ocrolus, which automates document processing for fintechs. and banks.

“Staffing just for volume fluctuation can be costly and damaging to these institutions,” Ross said. “It doesn’t have to be as it has been historically, where humans were the only option for decision-making and some of the rote tasks that needed to be done on a mortgage. There are so many different options to help break this cycle.

Incorporating automation into the mortgage process, such as review and approval, loan origination, document sorting and income calculation, could help lenders escape the cycle, analysts say.

“To help avoid these boom and bust cycles, lenders need to understand how the combination of human and digital engagement at different parts of the process can be optimized to help reduce costs and improve efficiency,” said said Craig Martin, Executive Managing Director and Global Head. of wealth and loan intelligence at JD Power.

Break the cycle

Volatility in the mortgage industry is nothing new, Ross said, adding that home loan application volumes have fluctuated dramatically over the past two decades.

Banks’ reliance on staffing during peaks and reducing roles during low-volume years, however, is something she’s surprised lenders continue to do.

“It’s amazing to me that we keep going through this cycle over and over again,” Ross said. “If you look at a bar chart from 2000 to today, it looks like the best roller coaster ever in terms of the peaks and valleys in volume that are happening. Anyone who is currently suffering from this quite suddenly volume drop is forced to make redundancies. But the question becomes: ‘How do we stop the cycle now, move on?’ »

Mortgage applications are at their lowest level since 2000, according to data released this week by the Mortgage Bankers Association.

“Mortgage applications remained at a 22-year low, held back by significantly reduced refinance demand and weak homebuying activity,” said Joel Kan, associate vice president of economic and industry forecasts. of the MBA, in a press release.

The buy index was down 21% from the comparable 2021 period and refinances were down 83% from a year ago, the MBA reported.

“Mortgage rates rose across all loan types last week, with the benchmark 30-year fixed rate jumping 20 basis points to 5.65%, the highest in nearly a month,” said Kan.

The market is not expected to rebound anytime soon as the Federal Reserve continues to raise interest rates to curb soaring inflation. The sharp rise in rates is hurting demand for loan refinance, as homeowners have no incentive to change their current payment structure.

“Changes in interest rates can create immense volatility and require major personnel changes in a short period of time,” Martin said.

USAA, an insurance and financial services company based in San Antonio cut 90 jobs in its mortgage branch in March amid projections of a 34% decline to some 25,000 home loans.

Wells Fargo has also launched at least two rounds of job cuts related to home loans this year.

The San Francisco-based bank eliminated an undisclosed number of positions in its home loan unit in April a week after reporting a 33% decline in origination volume. Chief Financial Officer Mark Santomassimo called it the biggest quarterly decline in mortgage volume since 2003.

A second round of layoffs affected 107 Iowa-based workers in the Des Moines-based bank’s home mortgage division under the Worker Adjustment and Retraining Act (WARN) opinions submitted in June.

JPMorgan Chase also saw layoffs in the mortgage division amid the sharp decline in demand for home loans and refinancing.

In June, the bank laid off hundreds of employees from its home loan division and reassigned hundreds more, Bloomberg reported.

The market downturn also hit non-bank mortgage specialists who responded with their own staffing adjustments.

Mortgage technology company Blend announced in April that it cut 200 posts company-wide, representing 10% of its total workforce.

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Helping local veterinarians | New https://ezyeating.com/helping-local-veterinarians-new/ Tue, 23 Aug 2022 02:41:00 +0000 https://ezyeating.com/helping-local-veterinarians-new/ For the first time in three years, Yuba-Sutter Veterans Stand Down was back with a number of essential daily services necessary for daily living. Services like going to the dentist, an eye doctor, and other key health checkups that can help ordinary citizens get the help they need every day. Yuba-Sutter Stand Down President Mike […]]]>

For the first time in three years, Yuba-Sutter Veterans Stand Down was back with a number of essential daily services necessary for daily living.

Services like going to the dentist, an eye doctor, and other key health checkups that can help ordinary citizens get the help they need every day.

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India aims to copy China, but not in loan-by-app craze https://ezyeating.com/india-aims-to-copy-china-but-not-in-loan-by-app-craze/ Fri, 19 Aug 2022 01:41:18 +0000 https://ezyeating.com/india-aims-to-copy-china-but-not-in-loan-by-app-craze/ Comment this story Comment There’s a lot about Beijing’s infrastructure push and investment-driven growth that India wants to emulate. But when it comes to consumer economics, emulating China’s out-of-control digital lending boom is strictly off the political agenda. The Reserve Bank of India’s recently released guidelines for app-based lending show a clear desire to rein […]]]>

Comment

There’s a lot about Beijing’s infrastructure push and investment-driven growth that India wants to emulate. But when it comes to consumer economics, emulating China’s out-of-control digital lending boom is strictly off the political agenda. The Reserve Bank of India’s recently released guidelines for app-based lending show a clear desire to rein in the industry after its pandemic-era excesses.

The RBI wants to strike a better balance between digital lending’s ability to democratize credit and its potential to suck people into a debt trap. The typical fixed cost of issuing, servicing and recovering a loan is 5,000 rupees ($60) for banks; for online platforms, it’s a few hundred rupees, according to industry sources. As mobile internet becomes ubiquitous, apps can sell small loans across the big country more efficiently than traditional lenders. This helps explain the eight-fold increase in loans made by local Paytm in the last year alone.

On the other hand, the RBI wants to put an end to the most harmful aspects of the industry, especially related to the invasion of privacy. Regulator says it blocks app access to “mobile phone resources such as files and media, contact list, call logs, telephony functions” and other personal data used to harass borrowers with impunity. Yes, lenders can request microphone and camera access to verify new clients, but the one-time privilege will require the borrower’s explicit consent.

The Indian regulator also requires customers to be informed in advance of the overall cost of interest and given a consultation period during which they can change their mind. Digital apps will be paid for by regulated banks and non-bank financial companies who will engage them as intermediaries, not by borrowers.

Chinese regulators have let banks outsource not just loan distribution but virtually all credit risk management to unregulated software and hardware firms. As a result, they pocketed the bulk of the profits. By contrast, the RBI signals that it would be more comfortable with interest margins split roughly in the middle – between the banks that provide the funds and the digital platforms that issue loans and collect payments. In the event that the company behind the application guarantees part of the lender’s loss from a bad loan, the central bank’s rules on asset securitization will apply. Basically, the RBI does not want credit risk to develop in the shadows – where it has no control.

This is altogether a more sensible approach. Some 1,100 loan apps proliferated in India at the height of the pandemic-induced chaos, promising all manner of quick credit and buy-it-now-pay-later arrangements. More than half of them were operating illegally, many of them leasing the balance sheets of local non-bank financial companies. Some of these underground operators disappeared after converting profits of at least $125 million into cryptocurrencies and transferring them to foreign wallets, according to media reports. The RBI guidelines would go some way to clearing the ground before it becomes a systemic risk.

More from Bloomberg Opinion:

• Why India doesn’t like to buy now, pay later: Andy Mukherjee

• Shoppers pay dearly for credit card rewards: Marc Rubinstein

• Banks suffer from loans, but not from consumers: Paul J. Davies

This column does not necessarily reflect the opinion of the Editorial Board or of Bloomberg LP and its owners.

Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services in Asia. Previously, he worked for Reuters, the Straits Times and Bloomberg News.

More stories like this are available at bloomberg.com/opinion

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August 15, 2022: MUFG launches direct lending unit for private equity clients https://ezyeating.com/august-15-2022-mufg-launches-direct-lending-unit-for-private-equity-clients/ Mon, 15 Aug 2022 11:02:58 +0000 https://ezyeating.com/august-15-2022-mufg-launches-direct-lending-unit-for-private-equity-clients/ Read the headlines from Monday, August 15, 2022 below: MUFG launches private equity lending group Mitsubishi UFJ Financial Group (MUFG) announced via press release the formation of its Direct Lending Group created to support private equity sponsor clients. The bank said Matt Maley will lead sponsor coverage as head of direct lending. In a statement, […]]]>

Read the headlines from Monday, August 15, 2022 below:

MUFG launches private equity lending group

Mitsubishi UFJ Financial Group (MUFG) announced via press release the formation of its Direct Lending Group created to support private equity sponsor clients. The bank said Matt Maley will lead sponsor coverage as head of direct lending. In a statement, Maley noted that MUFG’s direct lending initiatives began in 2019, “when our sponsor clients approached us to fund their mid-market LBOs outside of the heavily syndicated institutional market.” To date, MUFG has provided over 50 direct loans to private equity sponsor clients and their portfolio companies.

Riverside Parker Food Group Outlets

Mid-market private equity firm The Riverside Company has announced its recent exit from Parker Food Group, a company that develops and manufactures ingredients for food and beverage brands. Parker was rounded in 1926, and Riverside first invested in the business in 2017,” recalls Meranee Phing, Senior Partner at Riverside. In a separate statement, Parker CEO Greg Hodder said the company is “now ideally positioned for continued growth, with record revenue and a pipeline of opportunities across customers, end markets and canals”.

A separate press release announced that the business had been acquired by “an investment company indirectly owned by Investindustrial VII LP”. Financial terms of the investment were not disclosed. Investindustrial announced the same day that it had also agreed to acquire meal preparation company TreeHouse Foods Inc.

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Huron Capital backs ExperiGreen to launch its lawn care platform

Private equity firm Huron Capital, which focuses on the middle market, said in an announcement that it has invested in lawn care provider ExperiGreen Lawn Care, a deal that sees the company launch its residential lawn care platform. Huron noted that ExperiGreen’s management team will remain in place as it focuses on further scaling to become “a major national player,” according to company president John Moehn.

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