“We are only as strong as we are united, as weak as we are divided.” – Dumbledore in Harry Potter and the Goblet of Fire

Optimising Your Small Business Loans With ‘Debt Consolidation’

The title quote could apply just as well to your loan book as it does to Rowling’s book! Habitually, borrowers have preferred to borrow from multiple sources, in multiple forms. A Term Loan from Bank ‘A’, a Working Capital Facility from Bank ‘B’, a Loan Against Property from NBFC ‘C’, an Overdraft from Bank ‘D’, and so on. The reasons for doing so are varied: changing needs over time that require additional borrowing, perception that distributing the lender base and type of loans increases borrowing ability, and a false hope that the true extent of leverage cannot be clearly assessed by a new lender.

Some of these reasons may have been valid in a pre-digitisation era and in a time when credit scores and records were not consolidated in one source. However, these perceived advantages have been rendered totally irrelevant now.

Continue reading ““We are only as strong as we are united, as weak as we are divided.” – Dumbledore in Harry Potter and the Goblet of Fire”

Demonetisation: Uncertainty means MSMEs funding scenario hugely negative | Economic Times

 

Traditional lenders are pulling back in the short term as they wait to see the impact of de-monetization on their current portfolio and grapple with uncertainties in SME business performance and collateral prices. In the medium- and long-term, capital availability and lending will increase significantly as lenders get better visibility on business performance and more business transactions are recorded digitally.

– Shailesh Jacob

Continue reading “Demonetisation: Uncertainty means MSMEs funding scenario hugely negative | Economic Times”

Loan Frame raises Rs 15 crore in seed round | Economic Times

 

Small and medium enterprise-focused online lending platform Loan Frame Technologies has raised a seed round of $2.25 million (about Rs 15 crore), the latest venture-backed transaction in the country’s web-based lending space.

The investors in the round include Parag Saxena, co-founder of Vedanta Capital, William Campbell, former chairman of Visa International and Toos Daruvala, co-chief executive of MIO Partners, an internal investment arm of global consultancy McKinsey and Co. Saxena is also the founding general partner of private equity firm New Silk Route.

Continue reading “Loan Frame raises Rs 15 crore in seed round | Economic Times”

Loan Frame: Solving the Financing Problem for Indian SMEs | Business World

 

Borrowers can apply for a loan by logging onto Loan Frame’s website or by downloading its Android app. The company does detailed assessment of the needs of the SMEs and then provides the right solutions for the SMEs, at the most competitive interest rates

Loan Frame was launched in mid-2016 with the objective of redefining the experience of borrowing by SMEs in India. The Company is India’s first lending marketplace fully dedicated to SMEs. Loan Frame caters to the varied loan requirements of SMEs up to Rs. 50 crores. The company differentiates from its peers with its wide set of lending products to cater to almost all needs of small and medium sized businesses.

Continue reading “Loan Frame: Solving the Financing Problem for Indian SMEs | Business World”

Exclusive: Vedanta Capital leads seed round in fintech firm Loan Frame | VC Circle & Tech Circle

 

Gurgaon-based fintech startup Loan Frame Technologies Pte Ltd has raised $2.25 million (Rs 15.3 crore) in seed investment led by Vedanta Capital, a top company executive told Techcircle.

Other investors who participated in the round include William Campbell, former chairman of Chase Card Services, and Toos N Daruvala, co-CEO of MIO Partners, Inc., McKinsey Investment Office.

Continue reading “Exclusive: Vedanta Capital leads seed round in fintech firm Loan Frame | VC Circle & Tech Circle”

How Loan Frame Helped a Doctor Entrepreneur Set Up His Business?

Dr. RP Singh is a consulting doctor working at a large hospital based out of Delhi with an entrepreneurial streak. He wished to start a new business, managing lab machines for clinics. Given the large, upfront capital investment required, he needed to get a business loan. However, getting a loan for his start-up at a reasonable cost was proving to be nearly impossible given the absence of a track record and the multi-geography nature of work and collateral.

Continue reading “How Loan Frame Helped a Doctor Entrepreneur Set Up His Business?”

Are you paying more than 11% on your SME Loan or Loan Against Property?

The good news that you have been waiting for: interest rates have finally started inching downward. Copious flows of deposits have now allowed banks the leeway to reduce lending costs across maturities and loan products. SBI, Union Bank, and PNB have taken up the gauntlet of reducing MCLR (Marginal Cost of Funds Based Lending Rate) anywhere between 65-90bps (100bps = 1%). Feedback from banks and other lending agencies suggests that others will follow suit soon enough in order to remain competitive.

Continue reading “Are you paying more than 11% on your SME Loan or Loan Against Property?”