Latest Finance Updates

YES Bank finance solution for MSMEs

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YES Bank, on Monday, rolled out ‘YES MSME’, whereby the bank will support micro, small and medium enterprises (MSMEs) through solutions across lending, deposits, insurance, customised and segmented digital solutions for retail, manufacturing, wholesale, trade and service providers. This also includes special current account offerings for the self-employed segment, the private sector bank said in a statement. The MSME proposition re-engineers business processes, offering swift access to capital through digital lending and fintech partnerships, and products curated with industry associations that empower the bank’s MSME customers – promoters as well as businesses, it added. The bank underscored that its start-up programme offers collateral-free funding of up to ₹5 crore, along with consultancy and enterprise resource planning (ERP). Speaking at the virtual launch of YES MSME, Nitin Gadkari, Union Minister for MSMEs and Road Transport and Highways, said: “Investment in the sector is the need of the hour and we are hopeful that concerted efforts by the industry and the government will help expand it.” Prashant Kumar, MD and CEO, YES Bank, said the bank’s enhanced value proposition will improve access to finance for MSMEs and support their technology upgrade, among other customer-focussed measures.

Lowest home loan interest rates – Check out the latest rates offered by 15 banks

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If you’re planning to take a home loan, here’s a list of 15 banks that are currently offering floating rate home loans starting at under 7% p.a. The Indian economy is still suffering from the shocks of the Covid-19 pandemic, as a result of which the Reserve Bank of India has kept the repo rate at a record low of 4% to boost lending and encourage an economic revival. This has led the banks to reduce their floating interest home loan rates to multi-decade lows. The realty sector has also seen some price corrections to clear their inventory in an economy that has experienced major setbacks brought in by the pandemic. All these, interestingly, are making the current housing market a buyer’s one. So, if you have the necessary margin money, a stable income and adequate contingency savings, you might want to go ahead and finalise your home-buying decision to take advantage of the low interest rates and may be lower property prices too. Another thing aspiring homeowners must consider is their credit score which has now become more relevant than ever before. They must understand that these repo-linked home loans introduced by the banks typically consist of a credit risk margin too. Meaning, the lowest possible interest rates are usually reserved for those eligible applicants who have stellar credit scores (above 750-800), according to BankBazaar. The rate difference for applicants with excellent and poor credit scores could be around 100 basis points. As such, if you’re an aspiring homeowner, you would be well-advised to ensure your credit scores is good in order to get the lowest possible rates. So, if you’re planning to take a home loan, here’s a list of 15 banks that are currently offering floating rate home loans starting at under 7% p.a. Do note, the interest rate applicable to you would be determined on your chosen property’s size and location, your age, income, gender, credit score, loan amount, lender among any other terms and condition laid down by your bank, as per BankBazaar. Also note, the EMIs of repo-linked loans would increase proportionally as and when the RBI hikes the repo rate in the future. So, you may also want to make as much part-prepayments as possible in addition to EMI payments when the rates are low to become debt-free sooner.

Cashless health insurance claim settlement for Covid-19 treatment: IRDAI issues new instructions

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The IRDAI has directed all insurers to ensure that reimbursement claims under a health insurance policy should be settled as per the terms and conditions of the respective policy contract. The Insurance Regulatory and Development Authority of India (IRDAI) has said that in case of cashless claims under a health insurance policy, the claims should be settled as per the tariff decided by the parties in compliance with provisions of Regulation 31 of IRDAI (Health Insurance) Regulations, 2016. The regulator, however, said that insurance companies should make efforts to have agreements with health providers on the rates for treatment of COVID-19 similar to other diseases. The IRDAI has directed all insurers to ensure that reimbursement claims under a health insurance policy should be settled as per the terms and conditions of the respective policy contract. “In case of “Cashless Claims” under a health insurance policy, the claims shall be settled as per the tariff decided by the parties in compliance to provisions of Regulation 31 of IRDAI (Health Insurance) Regulations, 2016,” IRDAI said in a circular dated 13th January 2021. “However, the insurers shall make efforts to have agreement with health providers on rates for treatment of Covid-19 similar to other diseases for which rate agreements are in place. Also, while entering into such agreements, the reference rate of GI council can be kept in view for guidance alongwith rates fixed by State Governments and Union Territory administration, if any and as relevant,” the circular added. The insurance regulator further said, “All the insurers are directed to ensure that the “Reimbursement claims” under a health insurance policy shall be settled as per the terms and conditions of the respective policy contract. Hence, the insurers shall honor all the health insurance claims as per the terms and conditions of the policy contract.”