Loans & Credit

Loans, working capital, recovery, and credit facilities for individuals and businesses.

Credit Agriculture MSME Recovery SARFAESI IBC DRT Digital Loans

Articles

IBC Insolvency and Bankruptcy Code: What Happens When a Corporate Borrower Goes to NCLT

The IBC created a time-bound process for resolving corporate insolvency. Here is what the Corporate Insolvency Resolution Process actually involves.

03 Sep 2026 · 2 min read Digital Loans PM Vidya Lakshmi: The Government's Education Loan Portal

How the Vidya Lakshmi portal centralises education loan applications across multiple banks, and what the Central Sector Interest Subsidy scheme it links to actually covers.

03 Sep 2026 · 2 min read Digital Loans Jansamarth: The Unified Government Loan Portal, Explained

What Jansamarth actually does — aggregating scheme eligibility and lender options in one place — and how to use it without expecting it to be a lender itself.

02 Sep 2026 · 2 min read Digital Loans State MSME and Youth Entrepreneurship Schemes: What to Look For

How state-level MSME/startup schemes typically layer on top of central schemes, and the practical questions worth asking before relying on one for your business plan.

01 Sep 2026 · 2 min read Digital Loans PM Vishwakarma: Credit and Skill Support for Traditional Artisans

Who PM Vishwakarma is designed for, what the scheme bundles beyond just a loan, and how its two-tranche credit structure works.

31 Aug 2026 · 2 min read Digital Loans Lakhpati Didi: Credit Support for Women-Led Self-Help Groups

What the Lakhpati Didi initiative is targeting, how it works through Self-Help Groups rather than individual applications, and what "Lakhpati" status actually means.

30 Aug 2026 · 2 min read Digital Loans PM SVANidhi: Working Capital Loans for Street Vendors

How the PM SVANidhi scheme structures escalating working-capital loans for street vendors, and why on-time repayment unlocks larger follow-on loans.

29 Aug 2026 · 2 min read Digital Loans Renewing a Mudra or MSME Loan: What Lenders Reassess

Why working capital facilities need periodic renewal, what a lender checks before renewing, and how to keep a renewal smooth rather than a fresh underwriting exercise.

28 Aug 2026 · 2 min read Agriculture Kisan Credit Card (KCC): How Farmers Access Working Capital

The Kisan Credit Card gives farmers a simple, revolving credit line for cultivation and allied needs. Here is how it works and why it counts toward priority sector lending.

27 Aug 2026 · 2 min read

Frequently Asked Questions

Not necessarily — pricing depends on the bank, collateral, and borrower risk profile. The key difference is structure: CC is revolving and tied to short-term assets, while a term loan is a fixed, amortising facility.

No. While crop cultivation is the primary use, KCC limits can also cover post-harvest expenses, working capital for allied activities like animal husbandry and fisheries, and in some cases investment credit, depending on the bank's scheme structure.

It isn't mandatory to operate a business, but it is generally required to formally access MSME-specific schemes, subsidies, and priority-sector credit benefits, so most eligible businesses register.

No. NPA classification is an accounting and provisioning treatment reflecting overdue status; a write-off is a separate, later decision the bank may take for accounting purposes, and it does not extinguish the borrower's legal repayment obligation.

It applies to secured loans above a specified threshold extended by banks and notified financial institutions; it generally does not apply to unsecured loans or, with some exceptions, to agricultural land used as security.

The Committee of Creditors (CoC), made up primarily of financial creditors, votes on resolution plans; an approved plan then needs to be sanctioned by the NCLT to take legal effect.

Yes — DRTs generally handle recovery matters above a statutory pecuniary threshold set under the Recovery of Debts and Bankruptcy Act; smaller disputes are typically pursued through regular civil courts.

Debt Service Coverage Ratio measures a borrower's cash flow available to cover debt obligations. Banks use it to judge whether a business can comfortably service the loan being sanctioned.

Many KCC schemes bundle personal accident insurance for the farmer and crop insurance linkage under schemes like Pradhan Mantri Fasal Bima Yojana — confirm the specific inclusions with your bank.

No. CGTMSE only removes the collateral requirement by providing the bank a guarantee cover — the borrower still repays the loan with interest as per the sanctioned terms.

Yes — an OTS is typically reported to credit bureaus as a settled (rather than fully closed) account, which can negatively affect the credit score and future loan eligibility.

A borrower can approach the DRT to challenge the process, or can repay the outstanding dues (or reach a settlement with the bank) before the sale is finalised to halt further action.

No — IBC applies to companies, limited liability partnerships, and, under separate provisions, individuals and partnership firms, though most publicised cases involve larger corporate defaults given the amounts involved.

The DRT hears the original recovery application or SARFAESI challenge, while the DRAT is the appellate forum that hears appeals against DRT orders.