7 Financial Tips For Young Adults

For years, the commercial banking sector has been the dominant force in lending, including catering to the Micro, Medium, and Small Enterprises (MSMEs) sector. However, the evolving needs and demands of modern-day MSMEs have outpaced the traditional lending models. Abhay Bhutada, Poonawalla Fincorp’s MD, sheds light on the challenges faced by MSMEs and how Non-Banking Financial Companies (NBFCs) are emerging as crucial players in bridging the lending gap. The Lending Landscape Dilemma In a dynamic economic scenario, the lending space struggles to keep pace with the evolving needs of MSMEs. The Indian lending industry faces challenges such as limited access to finance, stringent scrutiny by traditional lenders, and the need for collateral. Shockingly, a report reveals that only 14 percent of the over 64 million MSMEs in India have access to credit, resulting in a staggering credit gap of $530 billion in the sector. This is particularly concerning given the substantial contribution of M...

In the hustle and bustle of the modern world, where traditional career paths are no longer the only option, the gig economy has taken center stage. It's like that bustling street food vendor next door - convenient, quick, and ever so tempting. But as we dive into the world of gig work, it's essential to consider how this shift influences retirement savings. Let's explore this dynamic and see how it affects our financial future. The Gig Economy Boom Before we delve into retirement savings, let's understand the gig economy. It's the realm of freelancers, independent contractors, and part-time workers who offer their skills and services on a project-to-project basis. Ride-sharing, food delivery, freelance writing, and graphic design are just a few examples of gig work. It's a world where flexibility often trumps job security. Also Read: Unveiling Why Entrepreneurs Prefer MSME Loans The Retirement Saving Challenge The gig economy offers flexibility and freedom, but ...

The financial landscape is undergoing a radical shift, and non-banking financial institutions (NBFIs) are at the forefront of this revolution. As technology continues to evolve, NBFIs are embracing digital trends, transforming their operations, services, and customer experiences. 1. Embracing Fintech Integration   The integration of financial technology (fintech) is a game-changer for NBFIs. Leveraging fintech tools and platforms allows these institutions to streamline operations, enhance efficiency, and deliver innovative services. Whether it's AI-powered analytics for risk assessment or blockchain for secure transactions, fintech integration is reshaping the way NBFIs operate. 2. Rise of Digital Payments   Digital payments have become the norm, and NBFIs are leading the charge. From mobile wallets to contactless payments, these institutions are providing seamless and convenient payment solutions. The shift towards cashless transactions is not just a convenience but...

Navigating the world of finance and investments offers a constant stream of opportunities and challenges. One key player in the financial sector, Non-Banking Financial Companies (NBFCs), is actively reshaping the landscape through digital innovations. These changes are not just noteworthy but transformative. In this article, we'll delve into the significant impact of NBFCs and their leadership in revolutionizing the financial sector in India. The NBFC Revolution NBFCs play a pivotal role in the Indian financial ecosystem. They are non-banking institutions that offer a wide range of financial services, such as loans, investments, and wealth management, without holding a banking license. These entities have experienced significant growth in recent years, serving as a crucial bridge between traditional banking and unbanked or underbanked individuals and businesses. One example of this transformation is Bajaj Finance, one of India's leading NBFCs. With a strong focus on digital par...

  In a rapidly evolving world, India's financial institutions play a crucial role in ensuring stability and economic growth. To fortify these institutions against potential shocks, the Reserve Bank of India (RBI) has introduced a groundbreaking initiative - Default Loss Guarantee Arrangements. Let's delve into how this creative solution is set to reshape India's financial landscape. 1. Understanding Default Loss Guarantee Arrangements The Default Loss Guarantee Arrangements, or DLGA, is a pioneering scheme by the RBI aimed at reinforcing the financial sector's resilience. Under this plan, the RBI provides a safety net to lending institutions to cover potential losses in case of borrower defaults. By doing so, it encourages banks and other financial entities to extend credit to businesses and individuals, fostering economic growth. Also Read: What Are The Benefits Of An MSME Loan? 2. Empowering Lending Institutions DLGA's impact on India's lending scene has been ...

  If you're looking to get a professional loan in India, you're in luck! Professional loans have become really popular in recent years, especially among self-employed people and business owners. But, before you apply for a loan, it's important to know the basics like what you need to qualify, what types of loans are available, what interest rates you can get, etc. So if you're thinking about getting a loan in India, here's what you need to know. What Is A Professional Loan? Suppose you're a doctor, a lawyer, or a chartered accountant, you'll need some funds to start your business or practice. This is when a professional loan comes in handy. You can even get such a loan to buy any kind of equipment you'll be needing for your business. You're not required to give any collateral for such loans.  India has several banks and NBFCs that offer professional loan services. In the past few years, the leaders managing these financial institutions have put an em...