ReportWire

Tag: consumer durables

  • Jio Finance kicks off lending business with consumer, merchant loans

    Jio Finance kicks off lending business with consumer, merchant loans

    [ad_1]

    Jio Finance, the lending arm of Jio Financial Services, has started its lending operations with three products–personal loans, consumer durable loans and merchant trade credit facility.

    The lender is offering digital personal loans of up to ₹3 lakh through the Jio Finance and MyJio mobile applications to salaried or self-employed borrowers aged 23-58 years. Applicants need to have a PAN card, Aadhaar card and Aadhaar-linked mobile number.

    Under consumer durable loans, Jio Finance is offering finance for high purchase items such as mobile phones, AC, camera, etc, which will be available with a no-cost EMI option at the merchant websites. Both salaried and self-employed individuals aged between 21 and 60 years can apply for these loans.

    “Jio Finance offers Consumer Durable Loans that are typically subsidised by manufacturers, OEMs (Original Equipment Manufacturers), or dealers, which allows customers to benefit from no-cost EMI options. However, customers are responsible for paying processing fees,” the company said on in a FAQ on its website.

    Financing inventory purchase

    Jio Finance has also started offering loans for business, where it extends unsecured merchant trade credit facility to registered merchants of JioMart Partner – B2B Wholesale, to finance inventory purchases.

    In its Q2 FY24 investor presentation, the company had said it had launched personal loans for salaried and self-employed individuals with an end-to-end digital journey, under the MyJio app in Mumbai, and consumer durable loans across 300 stores.

    It had then said that it had plans to start business and merchant loans for self-employed individuals, sole proprietors and small business entities; automobile loans, home loans, and loans against shares.

    JIo Financial Services is a systemically important non-deposit-taking NBFC and has recently sought the RBI’s approval to convert to a core investment company (CIC) from an NBFC. Following the conversion, Jio Financial will become the holding company for its consumer-facing subsidiaries Jio Finance, Jio Insurance Broking, Jio Payment Solutions, and Jio Payments Bank–the JV with State Bank of India.

    It already offers insurance broking services for car, bike, health and life insurance, and payments services solutions under Jio Payments Bank and JioPay Business.

    [ad_2]

    Source link

  • Credit cards outstanding up a record 29.6% in FY23 till end-Jan

    Credit cards outstanding up a record 29.6% in FY23 till end-Jan

    [ad_1]

    The total credit card outstanding in the current financial year so far, has increased significantly, at 29.6 per cent, compared with last year, according to Reserve Bank of India (RBI) data.

    The credit card outstanding stood at ₹1,86,783 crore as on January 27, 2023, (first 10 months of FY23) as against ₹1,44,162 crore in the year-ago period. In the comparable period of FY22, credit card outstanding grew by 9.3 per cent compared with the previous financial year (FY21).

    “Credit card usage has recently surged due to an increased discretionary spending on vacation, travel, entertainment and consumer durables,” BIbekananda Panda, Senior Economist, State Bank of India, told businessline.

    ‘Dramatic shift’

    “Following the pandemic, the credit card space has undergone a dramatic shift as ease of payments, mass acceptance of credit cards without additional fee. An analysis of the RBI data shows that the spurt in credit card outstanding is primarily driven by positive factors,’‘ Panda added.

    According to Krishnan Sitaraman, Senior Director and Deputy Chief Ratings Officer, Crisil Ratings, this is “clearly a reflection of the economy bouncing back’‘ and rebounding well after the pandemic.

    “We see a spurt in card usage in hospitality, travel/leisure, utility bill payments, healthcare, education, consumer durables, and e-commerce in general. More than 60 per cent of the card spends are now for online transactions. There has been a growth in incremental spends as well as spend per card. Cards in force have also gone up. From an asset quality perspective, we are not seeing any material increase in delinquencies as of now but that is what will be important to monitor and manage if NPAs are to be kept under control,” he added.

    The incremental credit card spend in the current financial year so far (till January end) has gone up by 50 per cent along with an increase in spend per card. The current data should be read in the context of low credit card penetration in India, said Prasanna Tantri, Executive Director, Centre for Analytical Finance, Indian School of Business (ISB).

    “The total outstanding credit card balance is less than 2 per cent of bank credit and 2.5 per cent of our annual savings,’‘ he added.

    [ad_2]

    Source link