New Delhi. The recent report of TransUnion CIBIL has revealed that banks have tightened their hands in distributing loans. Compared to last year, there has been a significant decrease in home, auto, and personal loan activity.Meanwhile, a report issued by the Reserve Bank has given a new option to the common man. If your loan has also been rejected by the bank, then you can fulfill your goal by applying here.
The recently released report of the RBI states that non-banking financial companies (NBFCs) are performing well within the scale-based regulatory framework, i.e., SBR. By the end of December 2023, this sector had increased lending by more than 10 percent.There has been a significant decline in the ratio of bad loans (NPAs) since the introduction of the SBR in October 2022. NPA was between 4.4 percent and 10.6 percent in December 2021, which has come down to between 2.4 percent and 6.3 percent by December 2023.
Reforms in NBFCs through PCA rules
The RBI bulletin said that this reflects better asset quality and risk management in the sector. NBFCs need to be mindful of the rapidly evolving financial landscape and address risk management, compliance and internal audit
The expansion of Prompt Corrective Action (PCA) rules for NBFCs is expected to further strengthen the sector. Due to increasing risks on bank loans, NBFCs are increasingly diversifying their funding sources by reducing dependence on bank borrowings.
There are many big NBFCs in the market
RBI has identified several leading NBFCs as upper layer under the SBR framework. These include major names like LIC Housing Finance, Bajaj Finance, Shriram Finance, Tata Sons, L&T Finance, Indiabulls Housing Finance, Piramal Capital.
Tata Sons trying to escape
So far, all the companies in this list except Tata Sons have initiated steps to comply with the listing. However, Tata Sons is still trying its best to avoid this listing. According to the rules, it has to be listed by September next year, but it wants to avoid listing by repaying the loans and through various other reasons.
1 thought on “If banks are not giving loans, then apply here; the RBI itself showed the way; this option is completely reliable.”