Rising non-performing assets (NPAs), overleveraged large companies and the general unwillingness of banks to lend money has meant small businesses are now finding it next to impossible to raise money. As loan portfolios sour, banks do not want to take the risk of lending to an SME.
Coupled with that is the fact that a large number of small businesses have no access to formal sources of finance, are under banked or have little or no credit history. For these businesses, there is no chance of getting a bank loan. It is with this understanding that a troika of entrepreneurs banded together to start Loan Frame.
Continue reading “Struggling to raise money? AI-powered bank loans from Loan Frame can help | Economic Times”
Whenever an SME (Small And Medium-Sized Enterprises) business wants to get business loans, it can get very frustrating because most of the qualities required to get the loan are structured with big businesses in mind. This is understandable because financial institutions would like to plug into developing companies but they do not want to bear a large proportion of the risk that comes with this move. It is, therefore, a common trend that SME businesses in India have limited options when it comes to capital financing. However, this is not only particular to India as developing countries also face these impediments.
Continue reading “What Are The Eligibility Challenges Associated With Business Loans In India? | StartupBuzz”
A credit score is a major deciding factor for banks to grant you loans and also to decide the terms and conditions on which the loans are to be given. Banks prefer borrowers with low outstanding balances, long credit history and high credit score. A good credit profile and high credit score are viewed positively by lenders. It also puts the borrowers in a position to bargain for better terms and conditions and draw loans at best available rates. On the other hand, it might get difficult to even get loans with poor credit score, leave aside the question of interest rates. Hence, it can be rightly said, “better the credit score, better the interest rates”.
Continue reading “When your Credit Score determines your Interest Rates”
Your credit score is the mirror to your lenders in terms of your repayment habits and to some extent, your reliance on debts. Thus, it is important for you to have a good credit score. Reviewing your credit report indeed helps you understand your credit health but understanding what is impacting your credit score is also important.
Continue reading “How Your Credit Score Is Calculated?”
Banks & Financial Institutions consider various factors to assess your credit worthiness whenever you apply for a loan. Fixed Obligations to Interest Ratio (FOIR) is one of the most important elements of the credit appraisal process of any business or individual. This ratio helps in determining their loan eligibility by comparing the Current Fixed Obligations of the applicant to his/her Net Monthly Income.
The Current Fixed Obligations include all the fixed monthly obligations of the customer but exclude the statutory deductions such as monthly Provident Fund contributions, Insurance Premiums, Professional Tax, Charity, Recurring Deposits, etc., which in turn help in determining his/her maximum monthly repayment capacity.
Continue reading “The Most Important Metric Banks Look At For Your Business Loan”
Loan Frame is a Fintech company which focuses on SME borrowers through an approach that marries technology with market knowledge, best practices in lending, and world-class processes. It has grown rapidly both in terms of number of clients as well as network of lenders.
Here’s why applying for a loan via Loan Frame makes eminent financial sense for you.
1. Marketplace model gives you choice
Loan Frame is a business loan marketplace. What a loan marketplace does is it collates various lenders of all types – banks, NBFCs, and any other finance company – on a common platform. This effectively makes you a buyer who chooses which seller to buy from rather than the other way around. No more lobbying with bank business loan officers and relationship managers who can introduce subjectivity to the process. Our credit team lets you know which lender’s profile matches with your requirements and you choose who to borrow from based on the best available deal.
Continue reading “5 Reasons a Business Loan via Loan Frame is Ideal for Growing Your Company”
In an interaction with Dataquest, Loan Frame Founder and CEO, Shailesh Jacob talks about the company’s idea, technology SMEs and loan algorithm. Jacob divulges the current scenario of finance in the industry and what Loan Frame looks for in a skilled candidate.
Kindly put some light on Loan Frame and the idea behind it.
Loan Frame is a leading fintech company that is committed to solving the financing problem for millions of small and medium enterprises (SME) in India. Its vision is to be the country’s largest and most preferred technology enabled SME lending marketplace.
Continue reading “India has everything to establish itself as a global FinTech hub: Loan Frame | DATAQUEST”
About the SME
Surendri Design, a well-known fashion design SME started operations in 2013 with the aim of becoming the preferred shopping destination for women across age groups. The brand has since become a popular name in the celebrity fashion circuit, and showcases its designs at renowned fashion events across the country.
Continue reading “Loan Frame empowers Gurugram Designer to expand and scale new heights”
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?”
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?”