ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • Rakesh Jhunjhunwala portfolio's net worth drops by 25% or Rs 8300 cr in 3 months owing to weak market
  • Zomato-Blinkit Deal: Food aggregator accused of not sharing information about deal on time; Investors file complaint with SEBI
  • Delhi government monsoon session commences today; salary hike of ministers, MLAs on the cards
  • National Pharmaceutical Pricing Authority fixes retail prices of 84 drug formulations
  • Twitter Blue users on Android can now customise navigation bar
Read in App
Business News » Personal Finance News

Loan Rate DOWN: While HDFC, SBI, ICICI, Indusland Bank hike lending rates, this lender bucks the trend

Loan takers are having to pay interest through their noses and there has been no relief in sight for a long time. However, bucking the trend is this new-age online lender. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Loan Rate DOWN: While HDFC, SBI, ICICI, Indusland Bank hike lending rates, this lender bucks the trend
Other leading banks like SBI, ICICI Bank, Bank of Baroda, Indusland Bank and Union Bank of India have recently hiked their respective lending rates by 5 to 20 bps each.

Loan takers are having to pay interest through their noses and there has been no relief in sight for a long time. However, bucking the trend is this new-age online lender. Faircent.com has actually reduced interest rates on unsecured loans by a whopping 200 bps to 9.99% per annum for prime borrowers listed on its platform. This is lowest "lowest" interest rate for unsecured loans offered by any private/PSU bank or alternative lending platform in the country, Faircent claimed in a statement. It further said the reduction in lending rate is the "direct result of RBI regulating the peer-to-peer lending sector in India and recognizing it as an NBFC-P2P, thereby unlocking the alternative credit supply into the economy."

Significantly, unsecured loans are issued without any collateral and are supported only by the borrower's creditworthiness. 

 The Reserve Bank of India (RBI) had hiked repo rate in August 2018 from 6.25% to 6.50% to curb inflation. This affected both the existing as well as future borrowers taking loans from banks. Following RBI decision, several public sector and private banks have increased their Marginal Cost-based Lending Rates (MCLR), making the with borrowers pay higher interest rates and EMIs on their loans. Faircent.com has done the opposite. 

HDFC Bank recently hiked its base rate by 0.20 percentage points to 9.15 per cent. In June, it had raised base rate by 10 basis points to 8.95 per cent (100 bps= 1 percentage point). 

Other leading banks like SBI, ICICI Bank, Bank of Baroda, Indusland Bank and Union Bank of India have recently hiked their respective lending rates by 5 to 20 bps each.

"The slashing of rates for unsecured loan to as low as 9.99% p.a by Faircent.com, may have an impact on the lending sector by putting downward pressure on lending rates and will help consumers and small businesses access funds at a much lower cost to meet their credit requirements," the company said. 

Vinay Mathews, Founder and COO – Faircent.com said, “Faircent.com was the first P2P lending platform to be certified as an NBFC-P2P by RBI in May this year, enabling increased credit supply on the platform that helped us bring down lending rates."

"In view of the latest increase in bank lending rates, alternative credit segments like P2P lending can be expected to play an integral role in helping boost the supply of credit in the economy and facilitate affordable credit in a highly transparent manner. We are confident that by reducing unsecured loan rates to 9.99% p.a, Faircent.com will have far-reaching impact on the Indian lending eco-system,” he added. 

The company expects that the availability of loans at as low an interest rate of 9.99% may, subsequently, not only prompt other alternative lenders in the country to bring their respective interest rates down, but also have an impact on loan pricing decisions in the formal banking sector as well. 

Watch this Zee Business video

In May 2018, Faircent.com became India’s first P2P lending platform to receive the Certificate of Registration (CoR) as an NBFC-P2P from the RBI. Early this year, it became the first NBFC-P2P to open its API platform to developers and recently, also integrated UPI with its payment gateway on the platform’s Lender dashboard, providing yet another layer of convenience to investors when transacting on the platform.
 
Faircent.com is one of India’s largest peer to peer lending website catering to retail and business loans. It is an online platform where, people who have spare money lend it directly to people who want to borrow, thereby eliminating intermediaries and the margins they used to make. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
HDFC BankICICI BankState Bank of IndiaAxis BankIndusland BankFaircent
Written By: ZeeBiz WebTeam
Updated: Wed, Sep 26, 2018
07:37 pm
New Delhi, ZeeBiz WebDesk
RELATED NEWS
HDFC Bank receives go-ahead from exchanges for amalgamation scheme with HDFC – know details HDFC Bank receives go-ahead from exchanges for amalgamation scheme with HDFC – know details
Stocks to buy: Sanjiv Bhasin picks HDFC AMC, Jubilant Food, Coforge for gains today; check why Stocks to buy: Sanjiv Bhasin picks HDFC AMC, Jubilant Food, Coforge for gains today; check why
HDFC Bank to add 1,500-2,000 branches every year for 5 years HDFC Bank to add 1,500-2,000 branches every year for 5 years
EMIs set to go up as HDFC Bank hikes lending rate by 35 basis points – check new rates EMIs set to go up as HDFC Bank hikes lending rate by 35 basis points – check new rates
Market capitalization of 4 out of top-10 listed companies surge Rs 2.31 lakh cr; IT heavyweights TCS, Infosys among lead gainers Market capitalization of 4 out of top-10 listed companies surge Rs 2.31 lakh cr; IT heavyweights TCS, Infosys among lead gainers

LATEST NEWS

National Pharmaceutical Pricing Authority fixes retail prices of 84 drug formulations

Air India alerts people about hoax communication; link offering Rs 6000, fake, says company

PM Narendra Modi to inaugurate 8th Edition of Digital India Week 2022; event to be hosted in Gandhinagar on 7-9 July

Financial, IT contribute 93% of FPI selling in 12 months; FIIs on longest selling spree since CY08 global financial crisis

Corporate Watch: JSW Steel, Titan, Torrent Pharma, Mindtree, Mphasis among 20 stocks that will remain in focus on dividend, bonus announcements this week

Zomato-Blinkit Deal: Food aggregator firm accused of not sharing information about deal on time; Investors file complaint with SEBI | Details

Indian Railway opens sleeping pod hotel at CSMT

National Apprenticeship Promotion Scheme Latest News: DBT - Govt to directly transfer Rs 1500 per month

Will recession hit Indian shores in six months? Zee Business Managing Editor Anil Singhvi decodes

Rakesh Jhunjhunwala portfolio's net worth drops by 25% or Rs 8300 cr in 3 months owing to weak market

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV