PhotonFin

There are some interesting critical exposure norms governing Loans Against Mutual Funds (LAMFs) & Loans Against Shares (LAS) in India 👇 The Reserve Bank of India (RBI) has established detailed guidelines to regulate how much credit financial institutions can offer to borrowers against securities. These exposure norms, dating back to 1998, aim to maintain economic stability and mitigate risks. Key highlights: ⤵ Maximum loan offered by a bank is ₹20 lakh for dematerialized securities and ₹10 lakh for physical securities. No such cap for NBFCs. ⤵ Bank's overall exposure to the capital market cannot exceed 40% of its net worth. ⤵ Financial institutions must notify the stock exchange if they hold collaterals worth over ₹100 crores. ⤵ Borrowers can get up to 50% of the value of equity-linked securities as a loan, but no such cap for debt-based securities. ⤵ If the collateral value falls below 50%, the borrower must repay to maintain the 50% loan-to-value ratio within 3 days. ⤵ Any collateral decline of more than 20% requires immediate bridging by the borrower. ⤵ Failure to bridge the gap allows the lender to liquidate the asset, with any excess amount returned to the borrower. Understanding these RBI regulations is crucial for financial institutions and borrowers alike to navigate the complex landscape of lending against securities. Compliance with these norms helps maintain a stable financial system and protects both lenders and borrowers from undue risks. Stay tuned for my next post exploring the rationale behind RBI's exposure norms on lending against securities. Found this useful? Repost & share with your connections. Follow me Manish Jeloka to see more such content. #Finance #Lending #Borrowing #NBFC #Loans

*Empowering Women and Building Resilience with Heat Insurance* A groundbreaking initiative in India has enabled 46,000 women to avoid hazardous work during extreme heat waves through heat insurance. This program, a collaborative effort between NGOs and insurance companies, provides financial compensation to women in labor-intensive jobs, allowing them to take leave during peak heat periods. This not only safeguards their health but also prevents financial hardship. With climate change intensifying, heat waves are becoming more frequent and severe, disproportionately affecting women in agriculture and construction. This initiative addresses these challenges, offering a model for scalable, climate-resilient financial solutions. As we navigate the impacts of climate change, such innovative insurance solutions are essential for protecting vulnerable populations and promoting economic stability and gender equality. #ClimateResilience #InsuranceInnovation #WomenEmpowerment #SustainableFinance #ClimateChange For more details: https://lnkd.in/dHq7yKgT

PhotonFin Secures Pre-Seed Funding, Powering the Future of Secured Lending! Prashant & I are thrilled to announce the successful securing of pre-seed funding round! This strategic investment fuels our mission to revolutionise lending for retail investors through our best-in-class digital platform by offering Loan Against Mutual Funds (LAMF) and Loan against Shares (LAS). Our platform swiftly connects borrowers to the banks, NBFCs, AMCs, RTAs, custodians, advisors, and investors and in less than 5 minutes, investors access funds without selling their assets, choosing between overdraft or term loans and paying interest solely on the utilised amount. By avoiding the delays of traditional loans, PhotonFin safeguards investors’ portfolios while prioritising transparency and efficiency, ensuring a secure and streamlined experience for all stakeholders. We express our deepest gratitude to our forward-thinking investors & partners from the BFSI segment. Their investment not only validates our vision and strategy but also fuels our drive to innovate and deliver exceptional value to our users. We are excited about the possibilities that lie ahead and are committed to continuing our journey towards empowering individuals to achieve their financial goals. Join the PhotonFin Revolution! Visit our website to learn more about how we're transforming secured lending and unlocking a world of financial possibilities. Siddarth Razdan (Mum Toronto Dxb)Prashant RathiAnil Kumar Agarwal.RAKESH GOYALSirshendu BasuAman JelokaDEEPAK DARYANANIPankaj KediaVinayak ShenviShiv MuttooKushal AgrawalJITENDRA BHARTIAShrenik GiriyaKadappan MSanjana DasguptaVatsala KejriwalAyan JelokaUmesh DesaiVikas GoelMohammad Asif Ghadiyali #funding #venturecapital #securedlending #banking