Tata Power, Bhutan & World Bank Drive $515M Clean Energy Boost with Dorjilung Project

Bhutan has signed $515 million in financing agreements with the World Bank, alongside Tata Power, to build the 1,125 MW Dorjilung Hydroelectric Power Project—its largest hydropower initiative, expected to generate one-third of the nation’s electricity and boost GDP by 2.4%.

Project Overview

• Capacity: 1,125 MW
• Location: Kurichhu River, eastern Bhutan
• Annual Generation: Over 4,500 GWh of clean electricity
• Completion Target: 2031
• Economic Impact: Expected to raise Bhutan’s GDP by 2.4%

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Financing & Structure

• Total Project Cost: $1.7 billion
• World Bank Financing: $300M from IDA (includes $150M grant), $215M from IBRD, up to $300M from IFC
• Public-Private Partnership: Druk Green Power Corporation (60%) and Tata Power (40%)
• Private Sector Catalyzation: Expected to mobilize $900M additional financing

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Regional Impact

• Exports to India: Nearly 80% of annual generation
• Carbon Reduction: Displacement of 3.3 million tons of CO₂ annually
• Energy Security: Reduces winter imports, provides surplus summer power for export

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Economic & Social Benefits

• Jobs: Direct and indirect employment opportunities
• Sectors Boosted: Manufacturing, tourism, and small businesses
• Revenue Use: Export revenues reinvested in health, education, and infrastructure

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Leadership Statements

• Dasho Tshering Tobgay, PM of Bhutan: “This project is a cornerstone of Bhutan’s 13th Five-Year Plan… advancing our carbon-negative commitment.”
• Johannes Zutt, World Bank VP South Asia: “The financing model sets a new standard for sustainable infrastructure development.”
• Dr Praveer Sinha, CEO Tata Power: “This landmark project will strengthen regional energy security and deepen India–Bhutan clean energy cooperation.”

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Key Takeaways

• Bhutan’s largest hydropower venture under PPP
• Model for sustainable financing with minimal sovereign debt exposure
• Transforms Bhutan’s energy sector, reinforces carbon-negative status
• Deepens regional clean energy trade with India

CHAKRA: SBI’s New Centre of Excellence to Mobilize $1.09 Trillion Investment in Emerging Technologies by 2030

State Bank of India (SBI), the nation’s largest public sector bank, announced the launch of ‘CHAKRA’ – Centre of Excellence (CoE) for financing sunrise sectors that are critical to India’s economic transformation. Reinforcing the bank’s strategic commitment to Viksit Bharat 2047, the centre will serve as a knowledge-led platform to enable financing for next-generation, technology-driven and sustainability-focused sunrise sectors.

SBI’s focus lies in enabling these capital-intensive sectors by directing capital flows responsibly, strengthening risk assessment capabilities and developing innovative financing structures aligned with evolving business models and policy priorities.

The Centre was inaugurated by Shri M. Nagaraju, Secretary, Department of Financial Services, in the presence of SBI Chairman, Shri Challa Sreenivasulu Setty. The Bank’s Managing Directors, and representatives from other Public Sector Banks and global banks, leading conglomerates, financial institutions, industry bodies and other key ecosystem participants were also present at the launch event.

On the launch, Shri M Nagaraju, Secretary, Department of Financial Services, Govt. of India said —

The CHAKRA Centre of Excellence is a commendable initiative by State Bank of India. The vision of the Centre to become a coordinated ecosystem platform covering knowledge-sharing, project appraisal, capacity building, and evidence-based policy engagement will meaningfully accelerate India’s progress towards Viksit Bharat 2047.”

The Centre proposes to focus on eight sunrise sectors viz. Renewable Energy, Advanced Cell Chemistry & Battery Storage, Electric Mobility, Green Hydrogen, Semiconductors, Decarbonisation, Smart Infrastructure, and Data Centre Infrastructure, that are emerging as key drivers of India’s economic future. By 2030, these eight sunrise sectors are expected to entail capital investment of over INR100 lakh crore (≈ $1.09 Trillion). The Centre will work towards enabling this massive investment.

Speaking on the occasion, Shri Challa Sreenivasulu Setty, Chairman, State Bank of India, said —

India’s growth over the coming decades will be anchored in innovation, sustainability and advanced manufacturing. With CHAKRA, SBI is strengthening its institutional capability to understand emerging sectors, design specialised financing solutions and partner with the ecosystem to enable projects that meaningfully contribute to the nation’s development journey. The Centre of Excellence reinforces SBI’s leadership in new-age technologies and climate finance, enhancing India’s integration into the global value chain, and accelerating progress toward Viksit Bharat 2047.

CHAKRA will drive tangible outcomes through white papers, sector reports, knowledge series, industry roundtables and policy dialogues, supporting informed decision-making for clients, investors, and policymakers. The Centre will facilitate structured engagement with development finance institutions, multilateral agencies, banks, NBFCs, industry bodies, corporates, start-ups, academia and policy think-tanks. Through CHAKRA, State Bank of India aims to build strong capabilities, support innovation‑focused enterprises, and improve the flow of capital to sectors driving India’s sustainable and technology-led future. This initiative builds on the bank’s earlier Centre of Excellence for MSMEs at the State Bank Academy.

Standard Chartered, Bank of India Lead $215M Aircraft Financing for Air India Subsidiary at GIFT City

• Standard Chartered and Bank of India structure a 7-year facility for six Boeing 777s via Air India’s leasing arm AIFS, marking a milestone for GIFT City’s financial ecosystem.

Standard Chartered and Bank of India today announced the financing of USD 215 million term loan to AI Fleet Services IFCS Limited (AIFS), a leasing subsidiary of Air India, based in the Gujarat International Finance Tec-City (GIFT City). AIFS has entered into a 7-year amortising term loan facility for financing of six Boeing 777-300 ER aircraft, it will lease the aircraft to Air India.

Air India is undergoing a fleet renewal and expansion program to support its transformation into a world-class global airline. Air India currently serves 55 domestic and 45 international destinations.

Standard Chartered played a lead role as a Structuring Bank. Both Bank of India and Standard Chartered also jointly underwrote the transaction as Mandated Lead Arranger and Bookrunner (“MLAB”). This landmark transaction is the first commercial aircraft finance transaction to be structured with a GIFT City borrower, positioning GIFT City as an emerging aviation finance centre. The transaction reflects the shared commitment of Standard Chartered and Bank of India to support India’s aviation growth story and highlights GIFT City’s role as a growing global aviation finance hub.

GIFT City is India’s first operational greenfield smart city and international financial services centre, promoted by Government of Gujarat in partnership with Government of India as a flagship project to position India on the global financial map. With this transaction, it marks a milestone for India’s rapidly expanding role in global aviation financing, strengthening its position as an emerging hub for aircraft leasing and financing.

Sanjay Sharma, Chairman, AIFS & Chief Financial Officer, Air India said, “Air India has embarked on a five-year transformation journey, placing an order for 570 aircraft, and GIFT City will be important for financing of these aircraft. With this commercial aircraft finance transaction via Standard Chartered and Bank of India we are glad to see GIFT City maturing further and emerging as an aircraft leasing and financing option for airlines as Indian aviation takes strides.”

Abhishek Pandey, Global Head of Transportation Finance at Standard Chartered, said, “This milestone demonstrates our ability to structure innovative, jurisdiction-aligned solutions while mobilising new pools of capital. This financing highlights our long-standing expertise in aviation finance and our commitment to supporting India’s aviation sector as it continues its remarkable growth trajectory.”

PD Singh, CEO, India and South Asia at Standard Chartered, said, “The first ever commercial aviation financing at GIFT City is an historic milestone and further reinforces GIFT city as an aviation finance hub of global repute. Standard Chartered is privileged to have led the transaction, in partnership with Bank of India. We believe the term loan facility to AI fleet services (AIFS), a subsidiary of Air India will provide a fillip to growing the aviation finance segment in India. It also underscores the Bank’s client centric approach and the endeavour to be an equal partner in the clients’ growth journey.

Standard Chartered was the first foreign bank to establish a branch in GIFT City and this transaction reaffirms our commitment to advancing GIFT city as a premier international financial hub. It is a matter of pride for Standard Chartered to have recently partnered with CCIL and IFSCA in bringing its global experience and expertise in managing the dollar payments as well as providing settlement services at GIFT IFSC,” Singh added.

Ashutosh Sharma, CGM – International Financial Services Centres Authority, GIFT City (IFSCA) said, "GIFT IFSC is developing strongly as a globally competitive ecosystem for financial services, including aircraft leasing and financing. The successful closure of this aircraft financing deal, originated within GIFT IFSC and executed among Bank of India (IBU GIFT City branch), Standard Chartered Bank, and AI Fleet Services IFSC Limited for wide-body commercial aircraft, marks a significant milestone. This transaction not only paves the way for future commercial aircraft financing through the GIFT City framework but also underscores GIFT IFSC’s emerging role as a growing hub for aviation financing and a destination offering competitive foreign currency loan structures."

Bank of India said, “At Bank of India, we are proud to be part of this landmark aviation financing transaction through GIFT City, Gujarat. This initiative underscores GIFT City’s growing significance as a global hub for aircraft financing. Aviation finance is a key enabler for India’s economic growth, connecting people, businesses, and markets worldwide. By leveraging the opportunities at GIFT City, Bank of India reaffirms its commitment to strengthening India’s presence in international financial services and contributing to the nation’s vision of becoming a leader in global aviation finance.”

Velocity Announces ₹200 Cr Fund To Support Restaurants, Cloud Kitchens Selling on Food Delivery Platforms

• Velocity announces ₹200 Cr fund to fuel the growth of restaurants and cloud kitchens selling on food aggregator platforms
• Velocity aims to empower F&B brands by providing fast, scalable, and flexible financing solutions tailored to their growth needs.

Velocity, India’s leading cash-flow based financing platform, has earmarked 200 Cr in 2025 to support and accelerate growth in the restaurant and cloud kitchen ecosystem across India.

The fund is specifically designed to address the unique challenges faced by F&B brands and help them grow. F&B brands often struggle to secure financing from traditional sources like banks and NBFCs. Recognizing this gap, Velocity offers cash-flow based financing, enabling restaurants and cloud kitchens to effectively manage capital expenditure, working capital, open new outlets, purchase equipment, and launch sub-brands under existing ones without impacting operational profits.

Velocity founders — Saurav Swaroop, Abhiroop Medhekar (in the middle), Atul Khichariya

India’s food delivery and dining-out market is projected to nearly double, growing from ₹5.5 trillion to ₹9 trillion by 2030, according to a report by Swiggy and Bain & Company. This surge is driven by rising disposable incomes, evolving consumer preferences, and the expanding reach of food aggregator platforms. Velocity’s fund is perfectly aligned with this growth and has placed a strong focus on empowering new-age restaurants and cloud kitchen brands, particularly those operating via food aggregator platforms like Zomato and Swiggy.

Commenting on the fund launch, Atul Khichariya, Co-Founder and COO, Velocity said, “The growing appetite of Indian consumers for diverse culinary experiences, combined with the convenience of online food delivery, is driving remarkable growth in the F&B sector. This shift is also fueling a premiumization trend, as consumers increasingly seek high-quality food and beverage options, reflecting their willingness to spend and indulge in unique dining experiences. Velocity’s cash-flow based financing model ensures that F&B brands can scale seamlessly while maintaining financial flexibility.”

Since 2020, Velocity has funded several notable F&B brands such as IDC Kitchen, Smoor, Daily Sushi, Brahma Brew Works, Milano Ice cream, Imperio, Amore Gelato, Jamie's Pizza, and Babas Chicken. These businesses utilized the funds to expand operations, strengthen supply chains, and enhance marketing efforts.

Elaborating on Velocity’s role in shaping IDC Kitchen’s growth story, Abhishek Manikchand Baldota, Director - IDC Kitchen, said, “ Velocity has been instrumental in the growth of our business and has become an invaluable partner in our journey to success. The beauty of Velocity's financing lies in its true sense of partnership. We felt like we had gained a financial partner genuinely invested in our success. With Velocity's support, we have been able to accelerate our expansion plans, invest in inventory, and scale our marketing efforts”

Daily Sushi, Minseong Seok (Co-founder. Left), Hyungtaek Lim (Co-Founder. Right) 

Minseong Seok, Founder of Daily Sushi, added “The partnership with Velocity went beyond providing funds. They ensured independence and transparency through the right integration of technology and support from a dedicated team.”

India’s F&B industry is undergoing a rapid transformation driven by the convergence of quick commerce, cloud kitchens, and ultra-fast delivery models. Platforms like Zepto, Swiggy Instamart, and Blinkit have introduced 10-minute delivery services such as Zepto Cafe, Bolt, and Bistro. Bigbasket and Magicpin are also preparing to enter this space, while emerging players like Swish and Zing are also gaining traction. This shift to ultra-fast delivery is redefining convenience for consumers, pushing F&B brands to adapt swiftly. Moreover, initiatives like the Open Network for Digital Commerce (ONDC) are enabling F&B brands to extend their reach beyond traditional marketplaces, unlocking new revenue streams in India’s evolving food delivery ecosystem.

To stay competitive, F&B brands are embracing technologies to better understand consumer behavior, standardize processes and are investing in automation and machinery. As India’s F&B sector evolves rapidly, Velocity’s ₹200 crore fund is designed to support new-age innovators in the space. By offering fast, scalable, and flexible financing solutions, Velocity enables F&B brands to seize emerging market opportunities, scale operations, and meet increasing consumer demand.

About Velocity:

Velocity is India’s leading cash flow-based financing platform for new-age businesses, focused on democratizing access to working capital for this traditionally underserved sector. Founded in 2020 by Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop, Velocity leverages these digital-first businesses’ abundant data and robust online cash flows to offer innovative financing solutions.Through partnerships with 26 ecosystem players, including four of the largest marketplaces, Velocity provides non-dilutive debt financing to E-commerce founders.

Since its inception, Velocity has disbursed over ₹1000 crores, enabling over 1,200 digital-first businesses, to overcome working capital challenges. The Bengaluru based fintech has raised $30 million in equity funding led by Peter Thiel’s Valar Ventures. Its portfolio includes many of India’s fastest-growing D2C brands like Soulflower, Chumbak, and Off Duty to name a few.

For more information, please visit: https://www.velocity.in/

REC Ltd To Establish Subsidiary in Gujarat's GIFT City, To Explore Global Market Avenues

REC Ltd, a state-owned enterprise under the Ministry of Power, has received approval from the Reserve Bank of India (RBI) to establish a subsidiary in Gujarat's GIFT City. This subsidiary is expected to engage in a variety of financial activities, including lending, investment, and other services, within the International Financial Services Centre (IFSC) at GIFT City.

The move is seen as a strategic step for REC to diversify its portfolio and explore new avenues for growth, particularly in the global market. The GIFT City platform is known for its conducive environment for international financial activities and world-class infrastructure, which REC aims to leverage for expanding its business operations.

This development is anticipated to not only present new business opportunities for REC but also contribute significantly to the growth of India's energy sector².

The establishment of a subsidiary in GIFT City is expected to bring several benefits to REC Ltd:

1. Access to International Capital Markets: The subsidiary will enable REC to tap into international capital markets more efficiently, providing access to diverse sources of funding, including foreign investments.

2. Diversification of Financial Activities: It will engage in a range of financial activities such as lending, investment, and other financial services within the International Financial Services Centre (IFSC) at GIFT City.

3. Global Market Expansion: The conducive environment and world-class infrastructure of GIFT City will allow REC to establish a presence in the global market and carve a niche for itself.

4. Contribution to India's Energy Sector: The new business opportunities presented by the subsidiary are anticipated to contribute significantly to the growth of India's energy sector.

5. Strategic Growth: This move aligns with REC's strategy of diversifying its portfolio and exploring new avenues for growth, furthering its mission to foster growth in India's power and infrastructure sector.

Overall, the subsidiary in GIFT City is expected to be a strategic asset for REC, aiding in its mission while also contributing to the broader energy sector's development.

IREDA Partners Union Bank of India and Bank of Baroda To Co-Finance Renewable Energy Projects in Tier-2/3 Cities and Rural India

The Indian Renewable Energy Development Agency Ltd (IREDA) has signed MoUs with Union Bank of India (UBI) and Bank of Baroda (BoB), on September 5, 2023, to accelerate the growth of renewable energy in India, particularly in tier-2 & tier-3 cities and rural areas.

The MoUs signed with UBI & BoB will empower IREDA to collaborate in co-lending and loan syndication for a wide range of renewable energy projects, including both established and emerging Renewable Energy technologies.

In recent years, IREDA has been actively encouraging partnerships with various Central and State agencies as well as financial institutions to leverage its techno-financial expertise for the development of the renewable energy sector.

Expressing his happiness about these partnerships, CMD of IREDA, Shri Pradip Kumar Das said, "Both Union Bank of India and Bank of Baroda have an extensive nationwide presence with a vast network of branches."

"This collaboration aims to extend our reach, particularly in tier-2 & tier-3 cities and rural areas, enabling us to provide unique and innovative financial support to existing and new customers. We are confident that by combining our strengths and resources, we will continue to serve our customers in alignment with the vision of the Prime Minister for Atmanirbhar Bharat and sustainable growth," the IREDA CMD said. 

Recently, IREDA has also signed an MoU with India Infrastructure Finance Company Ltd (IIFCL), to finance renewable energy projects including Small Hydro projects. Both the entities will strive to also fix interest rates for IREDA borrowings for a period of 3 to 4 years.

As on 21 August 2023, IREDA has financed 3,137 renewable energy projects with cumulative loan sanction of ₹1,55,694 crore and loan disbursement of ₹1,05,245 crore and has supported renewable energy capacity addition of 22,061 MW in the country.

IREDA recorded its highest-ever loan sanction of Rs 2,3921.06 crore and disbursement of around Rs 16,070.82 crore in 2021-22.

Formed in 1987 as a Mini Ratna (Category – I) Government of India Enterprise, IREDA is administratively controlled by the Ministry of New and Renewable Energy (MNRE). It is a Public Limited Government Company and a Non-Banking Financial Institution with an objective of setting up projects relating to new and renewable sources of energy across India.

How a Bike Loan can Help You Purchase your Dream Bike

Bikes have emerged as a definitive answer to navigating traffic in India. Two-wheelers are also easy to use and are relatively inexpensive. This has increased the demand for bikes and two-wheelers in the Indian market.

As the demand for bikes continues to grow, so has the demand for bike loans. In order to meet this demand, financial institutions have fine tuned their bike loan offerings. These days, you can apply for a bike loan from the comfort of your home with minimal documentation.

Let’s take a closer look at bike loans and why they might be a great way to finance your bike purchase.

Why Choose Bike Loans?

1. Purchase your dream bike

Purchasing your bike in cash can be a little challenging as you’d have to make the entire payment at one go. This can deplete your savings and can cause some financial stress.

Apart from depleting your savings, paying for your bike out of pocket can also mean that you’d need to make some compromises. This can mean that you’d have to choose a more inexpensive variant or a different bike altogether. This may not be such a good idea, particularly if you plan on using your bike for the foreseeable future. A bike loan can help you purchase your preferred bike without any hassles.

A bike loan allows you to purchase the bike of your choice without having to make any compromises. With a bike loan, you just need to make a down payment of anywhere between 0% to 30% of your bike’s value and you’re good to go. Post this, all you have to do is make monthly payments towards your bike loan.

2. Helps plan finances better

Taking a bike loan ensures that your EMIs are spread evenly throughout the loan repayment tenure. Paying for the bike in one go can throw off your finances and can cause a lot of liquidity crunch. Instead, you can take advantage of a bike loan and allocate your funds towards building an emergency fund or investing.

Additionally, you can analyse your finances before taking a bike loan to understand your repayment capability. It’s impossible to take a one-size-fits-all approach to personal finance. This is why you should always take into account your unique life and financial circumstances to arrive at a repayment plan that works for you.

You can use a two wheeler EMI calculator to understand how loan amount, interest rates and loan repayment tenure affect your monthly payments. You can tweak the repayment tenure and the loan amount a little bit to help you arrive at an ideal EMI amount.

3. Rewards and offers

Nowadays, the loan industry has become quite competitive. This means that lenders are eager to give loans to credible borrowers. This has translated into lower interest rates, rewards, free insurance offers, additional discounts, full-financing with zero down payment, etc.

If you have a regular source of income and have a good credit score, you may be eligible for one or many of these offers. Taking advantage of these offers can help you make the most of your bike loan and lower costs.

4. Helps improve your credit score

If you are new to credit, one of the simplest ways to improve your credit score is to take a small ticket loan. Apart from being a small ticket loan that’s accessible, a bike loan is also a secured loan. This means that the interest rate on a bike loan is much lower than the interest rates offered on other small ticket unsecured loans.

A combination of accessibility and affordability makes bike loans a great way to enhance your credit score. If you’re planning to take a bike loan to improve your credit score, here are some things to keep in mind:

• Avoid applying for multiple bike loans in a short period of time. This will signal to credit bureaus that you are desperate for credit and they may flag you as a risky borrower. This can lower your credit score.
• Always make sure to pay your dues in full, on time. Defaulting on payments can negatively affect your credit score.

5. Easy application process

These days, applying for a bike loan is very simple and takes only a matter of minutes. You only need a few basic documents and information to get started. You can get started online through your preferred partner’s online portal.

6. Low interest rates

Being a small ticket secured loan, bike loans bear some of the lowest interest rates available in the market. You can take advantage of these low interest rates to fund your bike purchase. Bike loan interest rates can range anywhere from 6.85% to 28.30% per annum.

By shopping around a little bit and/or negotiating with your lending partner, you can get very low interest rates that can make your bike purchases quite affordable.

7. Tax benefits

If you’re a self-employed person and intend on using your bike for business purposes, then you can get tax benefits on your bike loan. The interest paid towards this bike loan will be considered a tax-deductible. Apart from this, you can also deduct the amount paid towards the maintenance of the vehicle from your profits while filing for taxes.

Leading Digital Lending Platform LoanTap Partners with BigBasket’s HoReCa to Launch Financing Solutions

Collaboration to provide hassle-free credit options for businesses in the HoReCa industry

LoanTap, a leading digital lending platform, has announced a strategic partnership with Big Basket to introduce financing solutions for buyers from the BigBasket’s HoReCa segment. This collaboration aims to offer a unique and hassle-free experience to businesses in the HoReCa industry, enabling them to access credit quickly and conveniently. 

HoReCa is an acronym for Hotels, Restaurants and Cafes. 

Under this partnership, LoanTap will provide financing options to the customers of Big Basket in the HoReCa segment, with the general credit limit ranging from Rs 25,000 to 10 Lakhs. Customers will have a credit period of 30 days. By using a credit line as a payment method, customers will access 0% interest. This will encourage more customers to use the credit line as a payment method, increasing the number of transactions and thus, increasing market penetration of Big Basket's HoReCa segment.

The partnership between LoanTap and Big Basket's HoReCa segment will offer several benefits to both companies and their customers. LoanTap will be able to cater to small businesses through this arrangement and acquire new customers in the HoReCa market. This will provide LoanTap with an opportunity to create more personalized products to cater to the specific needs of businesses. On the other hand, Big Basket will be able to increase and retain its customer base by offering convenient financing options to its customers.

Commenting on the partnership, Mr Satyam Kumar, CEO & Co-Founder of LoanTap, said, "We are excited to partner with Big Basket's HoReCa segment to launch financing solutions for their customers. This partnership will enable us to reach out to more businesses and create more personalized products to cater to their needs. We are confident that our partnership with Big Basket's will bring benefits to both companies and their customers."

Mr Ashwath Ram, heading BigBasket’s HoReCa Division says, “The HoReCa (Hotel, Restaurant, and Catering) market in India is growing rapidly and has a lot of potential for organized suppliers. Additionally, the pandemic has resulted in an increase in home delivery services, which has further boosted the demand for food suppliers."

Bigbasket’s HoReCa market is expected to witness significant growth in the coming years with the increasing demand for quality food products and services. The food service market is expected to witness significant growth due to factors such as changing consumer behaviour, increasing disposable income, and the growth of tourism.

By partnering with LoanTap, Bigbasket’s HoReCa business customers benefit from having access to credit-based payment with 0% interest. This boosts our potential to tap into a small ticket market and expand the customer base. Additionally, this will help foray into the Cloud kitchen, QSRs, Restaurants and Bakery segments.”

The partnership will open up opportunities for both companies to explore new markets and expand their customer base. The companies will continue to work together to develop innovative solutions that meet the needs of businesses in the HoReCa industry. This partnership marks a significant milestone for both LoanTap and Big Basket's HoReCa segment, as they continue to strengthen their positions in the industry. 

About LoanTap –

LoanTap is one of the fastest-growing & trusted FinTech companies in the category with its in-house RBI-registered NBFC led by experienced leadership and a highly skilled team. LoanTap focuses on customer delight by helping them choose the best loan products from a portfolio of multiple products like personal loans, business loans, home loans, gold loans, loans against mutual funds plus many use case loans.

LoanTap has had a successful year expanding its distribution and Afterpay network in various sectors. Looking towards the future, LoanTap’s goal is to make credit more accessible to over 4 lakh merchants through their Afterpay network this year. LoanTap plan to achieve this goal by utilizing LTFLoW, their innovative Lendtech platform. LTFLoW allows to establish a roadmap towards profitable growth while creating a resilient digital lending ecosystem. With its anchor-led distribution stack, marketplace for capital coverage, and in-house NBFC, users of LTFLoW can continue to create innovative products and expand their reach.

U GRO Capital Ltd. Raises Impact Funds of $5 Mn in Partnership with Swiss-based Enabling Qapital

U GRO Capital has raised funds of USD 5 million through an ECB (external commercial borrowings) transaction with the EMF Microfinance Fund AgmvK (EMF). U GRO Capital, a listed entity that operates a Fintech lending platform for MSMEs (Micro, Small and Medium Enterprises), will be leveraging the funds to extend credit to India’s underserved business sections.

EMF was founded in 2008 as an instrument to catalyse access to capital where it is needed most and to promote financial inclusion to people in developing economies. Enabling Qapital (EQ), a Swiss impact-focused investment advisory and the exclusive advisor to EMF, acted as the chief facilitator for the funding round. The transaction took four months for closure with synergistic collaboration by all parties.

Expressing happiness at the conclusion of the exercise, Shachindra Nath, Vice Chairman and Managing Director, U GRO Capital said, “We share a common vision of financial inclusion with impact funding organisations such as EQ. The partnership furthers our purpose to serve India’s underserved business segments. Impact investors are critical funding partners to enable us bridge the enormous credit gap in India’s MSME sector. We will continue to leverage our technology and credit expertise to service MSMEs across the spectrum through our multi-channel distribution model.”

Chuck Olson, Managing Partner, Enabling Qapital further elaborated, “MSME Finance is a key driver for financial inclusion, and we are excited to partner with U GRO Capital in our endeavour to move money to meaning. We are confident that U GRO will enable us to positively impact the lives of MSME borrowers. The association will help strengthen our commitment towards greater financial inclusion in India.”

Contributing to the UN Sustainable Development Goals (SDGs) that outline reducing inequality and promoting inclusive growth as key goals, the proceeds from this partnership serve as a crucial credit link for India’s MSME segment. This fuels economic elevation through boosting business, accelerating job creation and promoting equality in distribution of opportunities.

About U GRO Capital Ltd.

U GRO Capital limited is an MSME-focused lending fintech platform. U GRO Capital’s mission is to ‘Solve the Unsolved’ by providing small businesses with much-needed credit. U GRO operates with an omnichannel distribution model combining physical and digital customer journeys. The company envisions to spearhead the transition of India’s MSME lending market to the new age of on-tap financing. It uses the emerging data tripod of GST, banking and bureau coupled with sectoral analysis to solve the problem of credit for small businesses.

U GRO Capital currently has 75 branches across 9 states. It aims to expand the branch network to 100 by FY2022 and intends to reach 250,000 MSMEs in the coming 4 financial years.

About Enabling Qapital

Enabling Qapital Ltd. (EQ) is a leading Impact Investment Advisory Company dedicated to a world where investments provide a financial and social return and have a positive economic, social, and environmental impact. EQ is a certified B Corp, the gold standard for environmental and social certifications. EQ currently advises over USD 500 million in assets within the EMF Microfinance Fund AGmvK (EMF) and the Spark+ Africa Fund (in cooperation with the Clean Cooking Alliance from the UN Foundation). EQ has approximately 50 team members based in Switzerland, Ecuador, India, Kenya, Kyrgyzstan, Liechtenstein, Mexico, Philippines, Pakistan and the United States in order to better understand local markets and be able to offer access to our services globally.

IndusInd Bank and ADB join hands to support Supply Chain Financing

IndusInd Bank has today announced a strategic partnership with Asian Development Bank (ADB) to support and promote Supply Chain Finance (SCF) solutions in India. The Bank has entered into a partial guarantee programme with ADB with an initial outlay of USD 70 million (Rs 560.0 crore), exclusively towards promoting Supply Chain Finance solutions in India.

IndusInd Bank aims to grow its presence in MSME financing and this partnership will further strengthen various initiatives of the Bank in this domain. With SCF being a focus area, the Bank has initiated a host of strategic efforts including the launch of new product structures for SCF. In addition to this, the Bank recently launched a state-of-the-art digital portal for SCF – ‘earlyCredit’ enabling 24*7 seamless processing of SCF transactions for corporates, suppliers & dealers.

Commenting on the partnership Mr. Amitabh Saraff, Head - Financial Services, SME Business & SCF, said “At IndusInd Bank, we look forward to funding the entire ecosystem of a corporate entity by offering holistic SCF solutions, meeting end-to-end requirements of both corporate and their dealers/suppliers thereby being a true partner in their growth trajectory. Partnership with a global organisation like ADB strengthens our SCF platform, a leading provider in the country. This association will further open up opportunities for the Bank to innovate and empower our clients with the best financing solutions.”

About IndusInd Bank

IndusInd Bank, which commenced operations in 1994, caters to the needs of both consumer and corporate customers. Its technology platform supports multi-channel delivery capabilities. As on June 30, 2022, IndusInd Bank has Branches / Banking Outlet and ATMs spread across geographical locations of the country. The Bank also has representative offices in London, Dubai and Abu Dhabi. The Bank believes in driving its business through technology. It enjoys clearing bank status for both major stock exchanges - BSE and NSE - and major commodity exchanges in the country, including MCX, NCDEX and NMCE. IndusInd Bank was included in the NIFTY 50 benchmark index on April 1, 2013.

RATINGS

Domestic Ratings:

CRISIL AA + for Infrastructure Bonds program/Tier 2 Bonds

CRISIL AA for Additional Tier 1 Bonds program

CRISIL A1+ for certificate of deposit program / short term FD program

IND AA+ for Senior bonds program/Tier 2 Bonds by India Ratings and Research

IND AA for Additional Tier 1 Bonds program by India Ratings and Research

IND A1+ for Short Term Debt Instruments by India Ratings and Research

International Ratings:

Ba1 for Senior Unsecured MTN programme by Moody’s Investors Service

SIDBI Partners With SVC Bank for Empowering MSMEs

The MoU signed will enable SVC Bank to tap into SIDBI’s Refinance facility to facilitate credit flow to MSME clients

SVC Bank becomes the first Urban Co-operative Bank to initiate a unique refinancing partnership with SIDBI

SVC Co-operative Bank Ltd. (SVC Bank), one of India’s leading co-operative bank and Small Industries Development Bank in India (SIDBI), country’s apex financial institution for micro, small and medium enterprises (MSMEs), today announced entering into a partnership through an Agreement.

The Agreement was signed by Shri Ashish Singhal, MD, SVC Bank and Shri Sanjeev Gupta, GM, SIDBI in Mumbai on July 28, 2022. As per the agreement, SIDBI will extend Refinance facility to SVC Bank to facilitate an improved flow of credit to MSMEs.

Commenting on the occasion, Mr. Ashish Singhal, Managing Director, SVC Bank, said, “MSME sector is the backbone of the Indian economy in terms of exports, employment creation and revenue to exchequers. SVC Bank has been supporting the MSMEs as a trusted partner for more than 115 years. We believe that access to affordable capital will prove to be a shot in the arm for the sector. In line with the Government of India’s vision of an Aatmanirbhar Bharat, SIDBI has proven to be the driving force for resolving the issues relating to MSMEs. We are proud to partner with SIDBI as the first UCB to participate in their vision of empowering the MSMEs.”

SIDBI is the Principal Financial Institution for Promotion, Financing and Development of the Micro, Small, and Medium Enterprise (MSME) sector as well as for coordination of functions of institutions engaged in similar activities, has recently decided to extend refinance assistance to eligible scheduled Urban Co-operative Banks (UCBs) and Regional Rural Banks (RRBs). This is the first such agreement executed with a UCB. SIDBI will sign more such Agreements with other UCBs and RRBs across various States.

Speaking on the agreement, Shri Sanjeev Gupta, General Manager, SIDBI, said, “We consistently work towards offering an empowered ecosystem to the Indian MSMEs. Towards this, we have now extended our partnership with various Scheduled Commercial Banks, SFBs and NBFCs to an urban co-operative bank. The focus is on aligning with the leaders across all segments, which can boost economic participation and upscale of India’s most promising aspirational powerhouses termed as MSMEs. We are elated to partner with SVC Bank. Being a century-plus young bank, SVC has demonstrated success in empowering communities. We will, in time, expand our refinance services to other banks as well.”

Set up in 1906, SVC Bank has contributed significantly to the development of the cooperative movement in India for over a century. Today, the Bank is one of the oldest and most recognized names in the country’s co-operative Banking space and remains the country’s only multi-state scheduled Bank with a presence across 11 states – Maharashtra, Karnataka, Goa, Gujrat, Rajasthan, Delhi, Haryana, Madhya Pradesh, Andhra Pradesh, Telangana, Tamil Nadu. With a total business of INR 29,659.53 crore and a Net Profit of INR 150.21 crore (FY 20-21), it has proven its robust and strong fundamentals. Headquartered in Mumbai, the Bank has a vast spread of 198 branches, 214 ATMs and has an employee strength of over 2300. The Bank offers the entire gamut of services across Retail Banking, Corporate Banking and International Banking. SVC Bank was recently awarded for its 100+ years of service at the hands of Hon’ble Union Minister of Home Affairs and Cooperation – Shri Amitbhai Shah. It has also been acknowledged with many prestigious awards, like ‘Data Centers Award’ & ‘Enterprise Security Award’ at Express BFSI Technology Awards 2022, Award for Outstanding Response to Covid-19 at Co-operative Banks Ingenious Leadership Summit and Technology Awards 2022, and Best BFSI Brand Award 2021 at The Economic Times Best BFSI Brands. The Bank was among the first few co-operative banks in the country to get the Authorized Dealer Category I License (Independent Forex Operations) from RBI, in December 2007. In July 2008, it launched its International Banking Division, which today handles more than Rs. 3,000 crore forex business.

Since its formation in 1990, SIDBI has been impacting the lives of citizens across various strata of society through its integrated, innovative and inclusive approach. Be it traditional, domestic small entrepreneurs, bottom-of-the-pyramid entrepreneurs, to high-end knowledge-based entrepreneurs, SIDBI has directly or indirectly touched the lives of Micro and Small Enterprises (MSEs) through various credit and developmental engagements. SIDBI 2.0 carries the vision of inclusive, innovative and impact-oriented engagements.

To know more, check out: https://www.sidbi.in

Union Bank of India Signs MoU with SIDBI for Co-Financing arrangement of MSMEs

Union Bank of India today signed a Memorandum of Understanding (MoU) with Small Industries Development Bank of India (SIDBI) for a Co-Financing arrangement for MSMEs. The MoU was signed by Shri Lal Singh, Chief General Manager, Union Bank of India and Shri Vivek Kumar Malhotra, Chief General Manager, SIDBI. SIDBI is country’s principal financial institution engaged in the Promotion, Financing and Development of Micro, Small and Medium Enterprises (MSME).

Shri Lal Singh, CGM, Union Bank of India and Shri Vivek Kumar Malhotra, CGM, SIDBI on singing of MOU

Under the MoU, Union Bank of India would consider Joint financing/ Co-Financing with SIDBI to Projects/Units in the MSME. This MoU would help the Banks to increase their customer base, while helping the MSMEs to meet their funding requirements. 

The key highlights of the arrangement include joint identification of viable projects and term loan and working capital financing to MSMEs. Initially the arrangement would be at specific centers and once the arrangement stabilizes at these centers, more locations would be covered.

Speaking on the occasion, Shri Lal Singh, CGM (MSME), Union Bank of India, said “MSME is one of the key sectors of our Indian Economy contributing to GDP, Exports, Manufacturing Output, Employment, Women Empowerment etc. MSME is one of the focused areas of the Bank and at Union Bank of India, we aim to become Bank of 1st choice for MSMEs. This tie-up with SIDBI aids in realizing the Bank’s vision to have increased credit flow to the MSME sector and extend operational convenience to the MSME clientele. Under partnership, Union Bank of India through its Pan India branch network can provide general Banking products like Current Accounts, Savings Accounts, Working Capital facilities and other related services to the MSME Customers of SIDBI.”

Also, speaking on the tie-up arrangement, Shri Vivek Kumar Malhotra, CGM, SIDBI reiterated SIDBI’s commitment towards timely financing for MSMEs across all sectors.

This comes a day after SIDBI signed MoU with Delhi Skill and Entrepreneurship University to nurture aspiring youth to infuse entrepreneurship and enterprise as preferred career choice.

Last month, Union Bank of India becomes the first public sector Bank to go live on the Account Aggregator Ecosystem for participating in Govt. of India’s Digital Initiatives.

Earlier in March, SIDBI, which is India's apex Financial Institution for financing and development of MSMEs, has acquired 7.84% stake in Open Network for Digital Commerce (ONDC) through an investment of Rs 10 crore. ONDC was incorporated in last year with an objective to create a first of its kind open public digital infrastructure to develop and transform the Indian digital commerce ecosystem for both goods and services.

KredX Enters Export Financing; Aims to Disburse $2 Billion by the End of FY-2023

KredX has entered post-shipment export financing

Aims to accomplish a book size of $2 billion by end of financial year 2023

Has tied up with Tradewind Finance to provide enhanced export and supply chain financing solutions

KredX, India's largest supply chain finance platform, today announced the expansion of its services into post-shipment export financing with KredX Global Trade. Through this new offering the company aims to empower businesses and their trade partners to have quick, digital and collateral-free access to liquidity against their receivables at competitive market rates. The initial focus will be on providing financing solutions to Indian corporates for international trade between key trade corridors: United States, Europe, Middle East and the rest of Asia. So far, the company has disbursed $100 million plus in funding requirements.

KredX Global Trade is a unique proposition that will focus on providing comprehensive financing solutions to Indian corporates along with developing a robust platform that will offer connectivity to the global liquidity pools and investors, allowing investors to invest with confidence. These features will offer SME corporates, which currently account for the highest contribution to India’s exports, an alternative source of financing driven by performance-based lending criteria instead of collateral based, at competitive rates.

This offering will provide Indian corporates the ease and convenience of operations with end-to-end digitized processes for availing working capital, which is unsecured and based on their current business performance and future growth and not on historical financial performance with a transparent pricing structure. Furthermore, such financing will complement companies’ existing sources of funding and be an additional source of funding that supports growth for the SME companies. Moreover, it will provide investors an opportunity to invest in/gain exposure to a larger band of trade receivables along with access to credible and real time insights into asset quality, underlying transaction documents and an extensive range of investment structures and risk profiles.

The company has also recently collaborated with Tradewind Finance, a global financial solutions company, to provide enhanced export and supply chain financing solutions to businesses. This collaboration will focus on providing financing to the international businesses of KredX customers at competitive rates.

KredX is privileged to be one amongst the four entities to be granted a license by International Financial Services Center (IFSC) to set up the ITFS platform at GIFT city. The company's collaboration with global financiers along with ITFS platform will effectively allow KredX to offer the lowest financing rates to exporters in India. The ecosystem offered by IFSC/ITFS and India’s commitment to grow its exports from USD 330 billion to USD 1 trillion by 2028, will allow KredX to empower SMEs which will in turn propel the growth of India’s exports ecosystem.

“This is an incredible milestone for us as we continue to exponentially grow the volume of transactions on our network. KredX has witnessed robust transaction flows via its platform. More than 6 billion transactions have been processed till date and 40,000+ businesses have increased their capital velocity 25-30 times in a year on an average. We are very excited about our expansion into global trade services and are ecstatic at extending our capability into a larger array of services. With this new proposition we hope to bring door-step and affordable finance to businesses of all sizes against their exports and imports. We have also partnered with leading financiers in key global markets to create hassle free financing options and more tie-ups are impending. KredX aims to accomplish a book size of $2 billion by end of financial year 2023 and we expect a 25-30% impact on the overall business within a period of 1 year through this new proposition”, said Manish Kumar, Founder and CEO at KredX.

About KredX:

Founded in 2015 in Bangalore by Manish Kumar and Anurag Jain, KredX is India's largest supply chain finance platform accelerating finance through the use of cutting-edge technology and data. The company offers a host of customisable solutions ranging from enterprise finance and cash flow management solutions to working capital and channel financing solutions for businesses, large and small, operating within the supply chain ecosystem while offering unique alternative debt investment solutions to investors worldwide. Through the use of reliable technology to accelerate customer growth, the company aims to become the world’s fastest operating system for supply chain finance.

Over $15 Million Supplier-Financing Program for SMEs From Fashinza

Fashinza, a B2B, new-age product development and production management platform enabling fashion brands and manufacturers to produce better, together, has joined hands with Stride One, SaraLoan and other fintech lenders to empower apparel manufacturing SMEs with an over $15 million supplier-financing program. The lack of requisite working capital has been a significant challenge and a roadblock for SME suppliers and manufacturers in fulfilling large orders from big fashion labels. The supplier finance program from Fashinza and the fintech lenders will help SMEs to receive their payments on due dates or early payments. This will help SMEs scale their business without capital limitation.

The supplier-financing program, offered by Fashinza in partnership with Stride One, SaraLoan (Blacksoil’s fintech arm) and other fintech lenders, will help manufacturers to focus on production without financial stress, and enable brands to focus on their operations and sales without their cash getting stuck in production. Also the long-term benefits for SMEs are the ability to scale up capacity and to get new opportunities to grow their business faster.

According to Abhishek Sharma, Co-Founder and COO, Fashinza: “India’s contribution to apparel manufacturing and the global fashion industry is undisputed. While there is immense scope to grow for SMEs, availability of working capital remains a challenge. Our financing program for SMEs is an enabler and is empowering small manufacturers. We work closely with suppliers and have found that when the working capital is taken into account, they are able to work on bigger projects with bigger labels and scale their business."

"Fashinza is solving the cash flow problem of apparel manufacturers by offering supplier financing limits via fintech partners like Stride One and SaraLoan. Supplier financing is a win-win solution for both Fashinza and manufactures. Manufacturers get paid on time or request for early payment by paying a nominal interest on actuals. Supplier financing program will act as a catalyst to exponentially grow Fashinza’s supplier partners’ business,” says Akshay Poshatwar, AVP - Financial Services & Strategy, Fashinza.

“In our endeavor to provide customized financing solutions, we have designed robust and flexible financial programs for Fashinza that meet their working capital needs. Through this partnership, Stride One continues its focus on creating disruptive supply chain financing solutions for new-age businesses, along with digitizing the onboarding process of vendors,” says Sameer Mahajan, CBO, Stride One.

“We are excited to work with Fashinza as they are helping highly unstructured apparel manufactures by providing them a tech backbone to help them get more business. By working with Fashinza, SaraLoan has been able to provide working capital to these manufacturers to help fulfill orders generated on the Fashinza platform. The solution offered by SaraLoan is flexible and manufacturers can draw as per demand and pay interest only on the amount utilized,” says Ashutosh Kumar, Chief Business Officer, SaraLoan.

Fashinza is an AI-driven B2B marketplace for global fashion supply chains. They make it exceptionally easy for international brands to access design to delivery in as fast as 4 weeks with very low minimums. Fashinza offers access to a transparent production process that can be monitored 24/7 with 100% control enabled by their revolutionary FactoryOS. Their goal is to create a sustainable (i.e. net positive) supply chain by 2030 and empower SMB manufacturers with Industry 4.0 solutions. Fashinza has a roster of over 250 factories that currently serves 200+ brands across 6 countries, including the United States, Canada, UAE and India. The company was co-founded in 2020 by serial entrepreneurs Pawan Gupta, Abhishek Sharma, and Jamil Ahmad. For additional information, please visit www.fashinza.com.

Stride provides comprehensive debt & supply chain financing solutions, across sectors and lifecycles, to cater to the distinctive challenges faced by high-growth and inherently strong businesses, backed by leading VCs.

SaraLoan offers B2B checkout solutions to businesses to better manage their payment for their customers and vendors. By offering a platform that integrates with their current accounting solutions, businesses are able to get a bird's eye view of their receivables and payables.

Meesho and Klub team up to Boost Local Manufacturing through Financing Partnership

Fintech startup, Klub has partnered with India’s social e-commerce giant, Meesho to support the local economy. This partnership aims to provide financing options for MSMEs on Meesho’s platform to enable domestic sourcing and manufacturing in the current COVID-19 economy.

Emphasizing on the honourable Prime Minister's call for self-reliance and lending support to Indian industries, the financing partnership of Klub and Meesho will provide end-to-end solutions to suppliers on the Meesho platform to raise capital for the growth of their businesses. Additionally, thisVocal for Localcollaboration will ensure flexible financing for select Meesho suppliers to source input material through domestic manufacturing units, and in turn, expand their business.

Commenting on the financing partnership, Anurakt Jain, Co-founder and CEO , Klub, said, “ As an embedded financing partner for Meesho, we look forward to combining our expertise and unique financial solutions with Meesho’s reach to provide some relief to small businesses. Klub’s goal is to enable local brands to reach their growth potential by offering flexible financing solutions." Founded by Anurakt Jain and Ishita Verma, and backed by Surge, Sequoia Capital India’s rapid scale-up program, Klub is actively building a platform to offer much-needed capital to local entrepreneurs in the Indian market.

Founded by Vidit Aatrey and Sanjeev Barnwal, Meesho currently has close to 4 million women entrepreneurs and 50,000 suppliers on its platform, who have in turn created more than 100,000 jobs in Tier 2 and 3 cities. "We are very excited to come together with Klub with a shared vision of converting business dreams to reality despite the challenges of the current economic situation," highlighted Vidit Aatrey, CEO, Meesho. The brand aims to encourage more local entrepreneurs to start up their businesses and eventually bolster the Indian economy by providing capital assurance through this partnership.

At a time when Indian MSMEs are reeling from the COVID-19 credit impact and are seeking alternative options for financing and growth, this partnership between the two home-grown startups further enables local manufacturing in the country.

About Klub

Klub is a fintech platform that provides skin-in-the-game growth capital to loved consumer brands through Revenue Based Financing (RBF). Klub is backed by marquee investors including Surge, Sequoia Capital India’s rapid scale-up program, EMVC Fintech Fund, and many prominent angels.

About Meesho

Meesho, founded by IIT-Delhi graduates Vidit Aatrey and Sanjeev Barnwal in 2015, is India’s largest social commerce platform that enables anyone to start an online business without investment.  It facilitates an innovative three-way marketplace enabling resellers, small and medium businesses (SMBs), and micro-entrepreneurs across India to connect with potential buyers using social media.

Post Covid-19: Non-bank Lending will Grow in Asia

The COVID-19 pandemic has significantly changed the psychology of average borrowers. One of the near-time effects will be the growth of non-bank lending. According to a customer survey of Robocash Group in Asia, 50% of respondents say about a higher need for financing. Moreover, the decrease in incomes during quarantine has prepared 45% for active borrowing when restrictions are lifted. At the same time, the other 9% will be motivated by the desire to satisfy their hunger for consumption.

To assess the psychological impact of the pandemic on the future credit activity of borrowers, company analysts identified nine main factors evaluating their positive and negative influence on a 5-point scale. Besides, the results of online customer surveys in the Philippines, Indonesia, Vietnam and India were taken into account.

On the background of the increased need for financing amid the pandemic due to various reasons among half of the respondents, one in four (28%) faced a real drop in income. The decline in financial wealth of the population became the main factor, which reduced the demand for all types of loans during the active phase of the quarantine. Other factors such as overall insecurity and anxiety, established habits to keep social distance and cut down on expenses have strengthened it. The effect will be long-term. Combined with tightened scoring requirements, it will also prevent a sharp surge in lending after the removal of restrictions.

However, the broader usage of digital services with the growing deferred consumption will still gradually prevail over the habits to social isolation and lower spending. The survey results confirm it. An increase in the volume of deferred expenses and the need for money has become stressful for many people. Thus, it will encourage 45% of respondents to borrow more in the post-COVID-19 period. Then, 9% of the surveyed are more likely to resume borrowing because they miss the usual spending.

Analysts of the company added: “Coronavirus has only expedited the expansion of digital and Internet services, boosting the demand for apps providing remote communications, video streaming, online shopping, etc. It has produced a solid base for the further penetration of non-cash payments and fintech.”

Although a far more complex set of factors will affect the outcome such as government policies, the state of alternative lending, the adaptation of traditional banks to the changes etc, psychological and related points allow predicting an increase in volumes for non-bank lending after the complete removal of restrictions. As the findings show, it won't be sharp but steady.

7 Tips to Use RD Calculator the Right Way

Recurring Deposit (RD) is a saving instrument used by individuals who are new to the world of investments and savings. This investment mechanism allows investors to make small deposits at regular intervals and earn returns on them. Thus this enables individuals to save penny by penny instead of depositing a lump sum amount in a go. Also, it is suitable for risk-averse investors as it provides higher returns than a savings account and has lower risks. One can say that an RD works as same as the FC, but comes with higher flexibility, making it more preferable.

Though recurring deposits seem to be a good investment option, it is essential to assess the optimal combination of the instalments, interest rates, and the tenure of the deposit that would fetch optimal returns. RD Calculator is one such systematically designed tool that can be used to decide the right blend. The RD calculator by Scripbox is one such measure that can help one plan one’s investments better. Individuals can use an RD calculator to know about the rates of interest and the value they would gain from their savings. 

Here are a few tips to use the RD Calculator in the right way online:

 

• Choosing and using the RD calculator: One must use an online calculator from an authentic source. Individuals looking for the help of a calculator should research online for the best rd calculator such as the one by Scripbox or any other financial institution. One the investor logs in to the official website of the calculator provider, he needs to input the amount he wishes to keep aside as savings each month. The next step is to choose the duration till which the investor wishes to invest in the RD. Note that senior citizens earn a higher return on their investments than ordinary investors. Thus it is important to enter the details about your senior citizenship to get the accurate output. Once this necessary information is entered, click on calculate. The calculator user gets the interest he or she might earn on the maturity of the deposit as the output.

• Calculation of maturity amount: The maturity amount that the investors get at the end of their duration is the total of the principal amount they deposit and the interest they earn over the period. Here the interest is compounded quarterly on the investment amount. This calculation of the maturity amount can be a little complicated for certain individuals. RD calculator comes to the rescue of such investors. The calculator helps them compute the maturity amount they ould receive on maturity. Thus it is a good idea to use an rd calculator whenever one needs to examine their prospective returns on the investments.

• Duration of the investments or the maximum and minimum tenures: Investors seeking to invest in an RD have a huge variety of options to choose from concerning the tenure of their investments. They can choose the investment tenures from 6 months to a maximum of 10 years. In case the investor is a Non-Resident Indian (NRI), the maximum tenure is as much as 12 years.

• Minimum monthly instalments: Recurring deposits are rather a very flexible mode of investments with relatively less risk and potentially higher returns. However, one limitation of this is that several banks and financial institutions have prespecified a minimum amount of monthly instalments that the investors are required to deposit in their banks’ recurring deposit accounts regularly. It is vital to note that this amount should be specified while using the calculator.

• Calculation of the TDS: One must remember that the RD calculator does not consider the TDS while presenting the output. Therefore, investors should calculate TDS manually. This is because of the RBI norms which do specify that recurring deposits are liable for TDS, but do not specify its implementation across various organizations.

• Age of the investor: The rate of interest available on a recurring deposit depends largely on the age of the investor. The majority of the banks provide a higher interest rate to senior citizens. This higher interest rate may range between 0.50% to 0.75% in addition to the ordinary interest rates for other investors. Thus, one must verify the rate of interest applicable before entering the figures in the calculator.

• How is the maturity amount calculated: While we can escape the complex calculations by using this online tool, it is important to understand the formula behind it for a better understanding of the process. 

 

The formula used when compounding is done quarterly in a recurring deposit is:

A = P*(1+R/N)^(Nt)

Here, ‘A’ stands for the maturity amount in INR that will be earned at the end of the tenure, ‘P’ denotes the recurring amount that shall be deposited regularly in the RD, expressed in INR, ‘N’ denotes the frequency of compounding, ‘R’ is the interest rate applicable in percentage terms of the recurring deposit, and ‘t’ is the tenure for which the deposit is to be made.

The investor to understand this formula before using an RD calculator as this must help in understanding the output along with the role of each parameter to be inputted.

HPE Financial Services Offers $2 Bn in Financing & New Programs to Help Customers and Partners Weather COVID-19

Hewlett Packard Enterprise announced today that HPE Financial Services (HPEFS) is designating more than $2 billion in financing specifically to help customers with their financial challenges stemming from the COVID-19 crisis, including cash-flow or liquidity issues. HPE Financial Services is also introducing initiatives including a Payment Relief Program to help customers acquire new technology and alleviate some of the financial strain as they navigate this uncertain climate. 

The $2 billion in HPEFS financing will be applied to help customers ensure business continuity and adapt in the current environment by addressing new technology financing needs, and convert their IT infrastructure into new sources of capital. Additionally, through the new Payment Relief Program, customers can acquire the technology they need today and pay only 1% of the total contract value each month for the first eight months, deferring over 90% of the cost until 2021. This can be a safety buoy for many businesses to help navigate the financial impact of COVID-19 in the next few months. Beginning in 2021, each monthly payment would equal approximately 3.3% of total contract value. 

“This is a challenging time to lead a business. Today more than ever, IT leaders and CFOs play a central role in ensuring financial health while continuing operations”, said Irv Rothman, President and CEO of HPE Financial Services. “At HPE Financial Services, we are committed to helping businesses align their priorities from an IT economics perspective and provide them with concrete solutions so they can move forward.”

Many businesses today have an immediate need to preserve cash flow, defer or reduce expenses, and relieve capacity strains and delivery delays. “During this crisis, businesses need help regardless of size of company or industry vertical. IDC recommends that organizations focus on two immediate needs: Conserving capital and utilizing flexible payment options like leasing or as-a-service to meet urgent capacity requirement with limited financial impact”, said Susan Middleton, IDC Research Director,  Flexible Consumption and Financing Strategies for IT Infrastructure. “By dedicating $2 billion in financing and leveraging its broad portfolio of flexible payment solutions, HPEFS will help business leaders navigate through the impact of COVID-19 on their markets.”

HPEFS is rolling out several programs designed to address these priorities: 

Generating cash from existing assets

HPEFS helps customers unlock value from their own technology through converting existing, owned IT assets into capital that can be applied to purchase new, upgraded technology. This incremental capital resource can help close the gap with IT expenditures or give customers the flexibility to support other parts of their business. HPEFS can also buy back excess newer generation technology that is no longer needed at the customer’s end. Over the last two years, HPEFS has infused more than $642 million back into clients’ budgets this way. 

Deferring or reducing expenses

In addition to the HPEFS Payment Relief Program, the team is also enabling a 90-day delayed payment structure to help ease customers’ tight budgets. This payment deferral option is available on new technology purchases, and is eligible for a range of HPE hardware and select software, software appliances, services, and installation packages. 

Matching payments to production

HPEFS offers customers a phased deployment program that allows them to acquire compute and storage capacity now with the flexibility to configure, test, and stand up systems before paying. This way customers can continue essential business without the restraints that the current crisis can have on their budget cycles or implementation timelines. The deployment schedule can extend out 12 months. 

HPE is committed to helping communities, customers, and partners during this time of global uncertainty and is applying its time, talent, resources, and technology to address the new challenges and requirements that organizations face as a result of COVID-19. For example, HPE recently rolled out VDI (virtual desktop interface) solutions to help customers support and adapt to growing demands for a remote workforce. To learn more about HPE’s initiatives please visit the HPE COVID-19 content hub, and see the latest blog from Antonio Neri, HPE President and CEO.

About Hewlett Packard Enterprise

Hewlett Packard Enterprise is the global edge-to-cloud platform-as-a-service company that helps organizations accelerate outcomes by unlocking value from all of their data, everywhere. Built on decades of reimagining the future and innovating to advance the way we live and work, HPE delivers unique, open and intelligent technology solutions, with a consistent experience across all clouds and edges, to help customers develop new business models, engage in new ways, and increase operational performance. For more information, visit: www.hpe.com.  

Financing available through Hewlett-Packard Financial Services Company and its subsidiaries (HPFSC) to qualified customers and is subject to credit approval and execution of standard HPFSC documentation. Rates and terms are based on customer’s credit rating, offering types, services and/or equipment type and options. Other charges, including without limitation, taxes, fees and shipping charges, may apply. Not all HP products are eligible. Not all customers may qualify. Other restrictions may apply. HPFSC reserves the right to change or cancel this program at any time without notice.