The Reserve Bank of India (RBI) barred four non-banking finance companies (NBFCs), including two microfinance institutions (MFIs), from sanctioning and disbursing loans for charging exorbitant interest rates to borrowers. The four entities were Asirvad Microfinance, Arohan Financial Services, DMI Finance, and Flipkart co-founder Sachin Bansal’s Navi Finserv.
Navi Finserv offers home and personal loans, while DMI Finance provides micro, small, and medium enterprise loans as well as personal and consumer loans.
Besides usurious pricing, RBI found these NBFCs non-compliant with regulatory guidelines on assessing household income and considering borrowers’ existing and proposed monthly repayment obligations. “Deviations were also observed with respect to income recognition and asset classification norms, resulting in evergreening of loans, conduct of gold loan portfolio, mandated disclosure requirements on interest rates and fees, outsourcing of core financial services…,” the country’s central bank said.
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RBI clarified that these NBFCs could continue servicing existing customers and manage collections and recoveries. The business restrictions would be reviewed once the companies confirm they took suitable remedial measures to comply with pricing policies, risk management, customer service, and grievance redressal guidelines.
Market experts told THE WEEK that the steps from RBI would serve as a warning to such NBFCs and MFIs who indulge in predatory pricing and charging exorbitant interest rates from customers. “RBI has recently been very vigilant about malpractices in this space, particularly where MFIs are busy charging exorbitant interest rates. It has issued multiple warnings, and this action is no surprise,” said SEBI-registered investment advisor Gaurav Goel.
“Such exorbitant pricing leads to more defaults and is counterproductive from a larger perspective. We believe in the long haul this action would be positive for the hygiene of Indian financial institutions and for safeguarding the interests of the common people,” added Goel.
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Many other experts felt that such a move would significantly impact the co-lending space as the central body tightens controls over NBFCs. Co-lending allows NBFCs and banks to partner and combine their strengths in risk-taking, regulatory compliance, and customer reach. The regulations, though restrictive, also encourage responsible lending and ensure that NBFCs maintain transparency and avoid reckless lending practices.
“We see this regulatory shift as a positive move, as it enhances the credibility of the sector. By weeding out weaker players, the regulations are creating space for more responsible players in the NBFC sector to thrive,” Rupee122 founder Vikkas Goyal pointed out.
“The future of co-lending in the NBFC space will be marked by stronger partnerships, stricter risk assessment, and more robust operational frameworks to maintain regulatory compliance while continuing to serve a growing customer base,” said Goyal.
Few stakeholders felt that such a move by RBI presents both challenges and opportunities in the co-lending space. With RBI regulations now focusing on curbing the lending capabilities of certain NBFCs, the co-lending space is likely to see more stringent governance, especially in areas like credit assessment and disbursal criteria, they said.
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“We believe that the future of co-lending will shift toward enhanced accountability and better risk management practices. By adhering strictly to these evolving regulations, NBFCs can foster greater trust within the financial ecosystem. These regulatory measures, while initially restrictive, could create a more resilient and transparent lending environment that benefits both borrowers and lenders in the long term,” observed Amit Bansal, founder of BharatLoan.
Borrower credit sanctions need more checks and balances
Through such a move, RBI continues to believe that the fintech originator and the co-lending partner (balance sheet provider) should both evaluate the borrower’s credit, and every sanction has to pass through the credit team. In an attempt to approve loans instantly, the co-lending partner ends up relying a lot on the originator for assessment. As a result, the credit analysis that the balance sheet provider should ideally perform has become less stringent. “This [RBI] circular would begin to exert pressure on the originator to keep the firm running, looking for liability, leading to a gradual shift towards partnerships with private and public banks,” said Nirav Shah, MD of Investment Banking at Equirus.
The circular reflects the RBI’s broader agenda to ensure responsible lending practices in the financial sector. As the microfinance sector grows, regulatory scrutiny is likely to intensify, pushing institutions to adopt fairer and more transparent lending practices.
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“The primary concern appears to be the excessive Weighted Average Lending Rate (WALR) and interest spreads over their cost of funds. At the same time, the NBFCs are reported to have deviated from the Fair Practices Code and regulatory guidelines concerning the assessment of household income and repayment obligations,” remarked Raiyan Kazi, business head of TransBnk, a digital transaction-banking platform.
“The co-lending market is expected to see a drop in volumes in segments with relatively higher FLDG as the industry adjusts to the new normal. However, the sector’s growth potential remains, driven by the increasing demand for financial services and the role of NBFCs in broadening access to finance,” added Kazi.
Yesterday, one of the affected firms, Asirvad Microfinance, issued a media statement acknowledging RBI’s circular. “This matter has been immediately brought to the notice of the board, and a meeting has been convened to take immediate action. The board has reiterated its unwavering commitment to implement RBI’s direction in letter and spirit and monitor the corrective action in a time-bound plan,” the statement read.
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Boeing’s new chief executive Kelly Ortberg warned that the plane maker must overhaul its culture to end a multiyear crisis that has shaken the confidence of customers and investors.
Ortberg told employees and investors that the plane maker was “at a crossroads” and that “serious performance lapses” had led to an erosion of trust, mounting debt and customer disappointment.
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He wanted to stabilise the business, improve its aircraft production processes, and executives to be “closely integrated with our business and the people who are doing the design and production of our products”.
His comments came ahead of Boeing’s third-quarters earnings call and a few hours before the company’s 33,000 machinists in Washington cast ballots on whether to accept a proposed deal with the company that would end a nearly six-week long strike.
The offer to increase wages by 35 per cent over four years improves on the company’s original offer of 25 per cent. It includes a performance bonus and better retirement benefits but does not reinstate the defined benefit pension that many workers remain angry about losing following a bitter fight in 2014.
Ortberg said he was “very hopeful” the deal would end the strike.
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In contrast to his predecessor Dave Calhoun, Ortberg moved to Boeing’s manufacturing hub in Washington from Florida after joining the company. “We need to be on the factory floors, in the back shops and in our engineering labs,” he said on Wednesday. “We need to know what’s going on.”
The company also needs to develop a new aeroplane “at the right time in the future”, he said, “but we have a lot of work to do before then”, including “restoring the balance sheet so that we do have a path to the next commercial aircraft”.
The US aerospace champion, which has been in crisis for much of the past five years, has eaten through billions in cash this year as it tries to address quality and manufacturing problems in the wake of a door panel blowing off a commercial flight in January. Ortberg said this month that the company would cut 17,000 jobs as it seeks to shrink the workforce “to align with our financial reality”.
The company reported on Wednesday that it had used $2bn in free cash during the third quarter, compared to $310mn for the same period in 2023. It also said it was “actively managing liquidity” as it tries to preserve its investment-grade credit rating.
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The company reported earlier this month that it would take a $5bn charge during the third quarter, while reporting losses of $9.97 per share — nearly four times larger than the third quarter of 2023 — on $17.8bn in revenue.
About $2.6bn in charges stemmed from delaying deliveries of the 777X by another year until 2026 — six years after airlines were originally promised their planes. Another $2bn came from losses on fixed-price defence contracts, and about $400mn derived from the work stoppage and the company’s decision to stop making the 767 in 2027, though it will continue to make the military version of the freighter, the KC-46A refuelling tanker.
The manufacturer had $10.5bn in cash and marketable securities at the end of the third quarter, just above the threshold it requires for operations. Boeing said last week it could sell up to $25bn worth of stock over three years but has declined to comment further on the size or timing of the equity raise.
From November, eligible households will receive automatic payments of up to £300.
Payments will then continue to be made throughout December.
Those who are eligible should have either received a letter, or should get one in the coming month, telling them how much they will be paid.
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It will also explain which bank account the payment will be paid into – this is usually the same account as where Pension Credit or other benefits are usually paid.
The DWP has advised all those eligible for the cash to expect it to enter their bank accounts by January 29 at the latest.
If the payment does not come through, pensioners are advised to contact the Winter Fuel Payment Centre online or by telephone.
When you contact the Winter Fuel Payment Centre you will need to provide your name, address, date of birth and NI number.
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Eligible pensioners should look out for a specific code to double check that the money has been sent.
Fuel duty hike is double blow after Winter Fuel Payment loss, says pensioner
For those in England and Wales, the payment will appear as the customer’s National Insurance (NI) number followed by “DWP WFP”.
Whereas those in Northern Ireland should look for their NI number followed by “DFC WFP”.
So, if you live in England and your NI number is QQ123456B the payment would show up as QQ123456B DWP WFP.
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You should check for this code before consulting DWP.
If you don’t think your winter fuel payment has come through, check for this code in your bank statement before consulting the Department for Work and Pensions (DWP).
And if you haven’t yet checked whether you meet the new criteria for the payment, make sure you’re up to date and know how much you’re be expecting.
What is the Winter Fuel Payment?
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Consumer reporter Sam Walker explains all you need to know about the payment.
The Winter Fuel Payment is an annual tax-free benefit designed to help cover the cost of heating through the colder months.
Most who are eligible receive the payment automatically.
Those who qualify are usually told via a letter sent in October or November each year.
If you do meet the criteria but don’t automatically get the Winter Fuel Payment, you will have to apply on the government’s website.
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You’ll qualify for a Winter Fuel Payment this winter if:
you were born on or before September 23, 1958
you lived in the UK for at least one day during the week of September 16 to 22, 2024, known as the “qualifying week”
If you did not live in the UK during the qualifying week, you might still get the payment if both the following apply:
you live in Switzerland or a EEA country
you have a “genuine and sufficient” link with the UK social security system, such as having lived or worked in the UK and having a family in the UK
But there are exclusions – you can’t get the payment if you live in Cyprus, France, Gibraltar, Greece, Malta, Portugal or Spain.
This is because the average winter temperature is higher than the warmest region of the UK.
You will also not qualify if you:
are in hospital getting free treatment for more than a year
need permission to enter the UK and your granted leave states that you can not claim public funds
were in prison for the whole “qualifying week”
lived in a care home for the whole time between 26 June to 24 September 2023, and got Pension Credit, Income Support, income-based Jobseeker’s Allowance or income-related Employment and Support Allowance
Payments are usually made between November and December, with some made up until the end of January the following year.
Pensioners who are worried about missing out on the payment this winter can seek support from a long list of schemes – which will also be detailed at the end of this article.
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What is the winter fuel payment and who is eligible?
The winter fuel payment is issued to state pensioners on certain benefits to help cover the cost of hiked up energy bills over the colder months.
This is because households tend to use more energy for heating as temperatures drop.
The payment, which is made in November or December, is automatic meaning you don’t need to apply.
Those on Universal Credit with a joint claim where one member was over the state pension age previously had to apply to get the payment.
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To automatically qualify this year, you need to be of state pension age and in receipt of one of the following benefits:
Pension Credit
Universal Credit
income-related Employment and Support Allowance (ESA)
income-based Jobseeker’s Allowance (JSA)
Income Support
Child Tax Credit
Working Tax Credit
You must have an active claim for these benefits during the “qualifying week” which is from September 16 to 22 this year.
You only need to apply this year if:
you moved to an eligible country before January 1, 2021
you were born before September 23, 1958
you have a genuine and sufficient link to the UK – this can include having lived or worked in the UK and having family in the UK
Households can claim by phone from October 28 via the number 0800 731 0160.
They have until March 31, 2025 to do this.
Or to claim by post, you’ll need to fill in the winter fuel payment claim form and post it to the Winter Fuel Payment Centre.
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This is available at www.gov.uk/winter-fuel-payment/how-to-claim.
More energy help for pensioners
In response to the government’s slash to the winter fuel payments, Octopus Energy has launched a scheme offering discretionary credit of between £50 and £200 to pensioners.
British Gas has also set aside over £140 million this winter for its Individual and Families Support Fund.
And Scottish Power‘s Hardship Fund has handed out more than £60 million to its struggling customers.
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To find out what you can get, check the offers from your own supplier first by going to their website or asking someone on the phone.
Help can also be accessed from your local council via the Household Support Fund, which has renewed a fresh pot of £421 million finding for vulnerable households.
To find out if you are eligible, go to your council’s website and read over the conditions of the scheme.
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If you’re just looking for simple ways to reduce your bill this winter, each of these supplier schemes, as well as the Household Support Fund also offer free electric blankets as part of their deal.
However, it is important to note that the elderly should not avoid turning the heating on if they are cold – for energy help contact your provider or local council, or read our article here.
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Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
In April this year, when Godrej Properties launched a new project in Gurugram, Haryana, homes worth over Rs 3,000 crore were sold in just three days. This is a testament to the strong demand for luxury homes, and the trend is not just visible in Gurugram or the National Capital Region.
According to real estate consulting firm CBRE South Asia, sales of homes priced Rs 4 crore or more in the top seven cities in the country surged nearly 38 per cent from a year ago in the January-September period. During the nine months, 12,630 luxury homes were sold across Delhi/NCR, Mumbai, Pune, Bengaluru, Kolkata, Hyderabad and Chennai. In the same period a year ago, 9,165 homes were sold across these cities.
In terms of the quantum of luxury home sales, Delhi-NCR topped with sales of 5,855 units, a 72 per cent jump; Mumbai followed at 3,820 units, a growth of 18 per cent.
In the July-September quarter, 4,360 luxury homes were sold, compared with 2,390 units in the same period a year ago.
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Multiple reasons are driving this surge in luxury home sales across major markets. There is a growing preference among affluent buyers for enhanced amenities and more spacious living areas that complement their multifaceted lifestyles, pointed out CBRE. Separately, there is a growing aspirational class that is significantly driving demand for luxury properties. Another reason that has fueled luxury housing demand is the rise in NRI (non-resident Indians) and astute domestic investors.
“India’s luxury housing market is witnessing significant growth, reflected in an increase in sales. Following strong performance in the first half of 2024 and the seasonal boost during festivals, we expect sales and new launches to exceed 3,00,000 units for the second consecutive year,” pointed Anshuman Magazine, chairman and CEO – India, Southeast Asia, Middle East and Africa, CBRE.
He also foresees heightened demand in the high-end and premium segments (homes priced between Rs 1-2 crore and Rs 2-4 crore), with traditional mid-range markets like Noida, Bengaluru, Pune, and Chennai increasingly gravitating towards luxury developments.
Magazine, however, feels elevated capital values in an uncertain global economy may lead buyers to adopt a cautious approach.
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Meanwhile, the just concluded nine-day auspicious Navratri period seems to have been very good for developers in the Mumbai market. Data from consultants Knight Frank showed that 5,199 properties were registered in Mumbai (an area under the city municipal corporation jurisdiction) between October 3 to October 11, up over 13 periods from the 4,594 registrations recorded in the year-ago Navratri period.
The daily average property registration rate increased to 578 units in the Navratri period this year, compared with 510 units registered during Navratri in 2023. In comparison, in September this year, Mumbai registered 9,111 property transactions, averaging 304 units a day, Knight Frank noted.
Christmas doesn’t have to be expensive to be memorable. With a bit of creativity, you can give thoughtful, personalised gifts without overspending. Whether you’re on a tight budget or simply looking to simplify your holiday shopping, these frugal Christmas gift ideas will help you show your loved ones you care—without breaking the bank. From DIY holiday gifts to affordable experience-based presents, this guide offers lots of thoughtful, affordable gift ideas that won’t leave you stressed about spending.
DIY Gifts: Personal and Inexpensive
DIY Christmas gifts are not only affordable but also meaningful. By creating something yourself, you’re showing thoughtfulness and effort without the expense of store-bought items. These gifts are perfect for those looking to give something more personal.
Examples:
Homemade Candles or Soaps: Customize scents and colours for a personal touch. These DIY holiday gifts on a budget are sure to be appreciated by the recipient.
Baked Goods: Bake a batch of Christmas cookies, fudge, or bread and package them beautifully in a reusable jar or festive wrapping.
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Photo Album or Scrapbook: Compile memories with personalized captions for a sentimental gift that costs little but means a lot.
Knitted or Crocheted Items: If you’re crafty, a handmade scarf, hat, or blanket can be a warm and thoughtful present.
Upcycle and Repurpose Items
Look around your home for items you can repurpose or upcycle into unique gifts. This is not only environmentally friendly but also a cost-effective way to give thoughtful presents.
Examples:
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Mason Jar/Preserving Jar Gifts: Fill a jar with homemade hot chocolate mix, bath salts, or a cookie baking kit. These homemade gift kits are easy to make and very affordable.
Customized Picture Frames: Repurpose an old frame and add a personal touch by painting or decorating it to fit the recipient’s style.
Gift Baskets from Home Items: Create a themed gift basket using items you already have. For example, a movie night basket could include popcorn, hot chocolate, Netflix, and cosy socks.
Experience-Based Gifts
Instead of giving physical items, offer experience gift ideas for Christmas that create lasting memories. These gifts can be very affordable and often have more impact than material items.
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Examples:
Homemade Coupons: Create coupons offering services like babysitting, cooking a meal, or a movie night. You can design these for free online or make them by hand.
Local Events: Give tickets to a local theatre production, concert, or museum you can enjoy together.
Plan a Day Out: Gift an itinerary for a future day out, such as a hike, picnic, or visit a nearby park.
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Subscriptions and Digital Gifts
Digital gift ideas are another great way to save money while giving something that the recipient will enjoy. Subscriptions can be particularly thoughtful gifts that continue to provide value throughout the year.
Examples:
Streaming Service Subscriptions: Gift a month or two of Netflix, Disney+, or Spotify.
E-book or Audiobook Subscriptions: Services like Kindle Unlimited or Audible are great for book lovers.
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Online Courses: Offer a course on a subject your recipient is passionate about, such as cooking, photography, or personal development.
Gift Plants or Herbs
For the plant lover in your life, a small potted plant or herb garden kit can be a thoughtful and frugal gift. Many small houseplants, succulents, or herb seedlings are inexpensive and bring a relaxing vibe to any space.
Examples:
Succulents: These low-maintenance plants are perfect for busy people or new to gardening.
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Herb Kits: You can find affordable herb-growing kits or assemble your own with small pots, soil, and seeds.
Homemade Mixes or Kits
Gift your favourite recipes by preparing the dry ingredients in a jar or kit form for the recipient to make at their convenience. These homemade gift kits are easy to assemble and cost-effective.
Examples:
Hot Chocolate Mix: Layer cocoa powder, sugar, and marshmallows in a jar for an easy, festive treat.
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Soup or Cookie Mixes: Layer dry ingredients for soups, cookies, or brownies, and attach the recipe to the jar.
Craft Kits: Put together DIY craft kits with materials for projects like bracelet-making, painting, or journaling.
Frugal gift-giving doesn’t mean sacrificing thoughtfulness. With some creativity and personalization, you can make Christmas special for your loved ones while sticking to your budget. Whether you opt for DIY holiday gifts, repurpose items you already have, or offer experience gifts rather than material items, there are plenty of ways to show you care without overspending.
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By following these frugal gift ideas, you can have a more affordable and meaningful holiday season that won’t leave you in debt come January.
Karen, from Sheffield, said she was “in a total mess” with debt before seeking help from a charity in the city
A woman who owed thousands of pounds on credit cards, catalogues and utility bills has praised staff at a money advice service for helping her to wipe her personal debts free of charge.
Karen, 60, from Sheffield, said she was left living “just like a hermit” after having to move house and building up sizeable debts following the end of a relationship.
However, while visiting the S6 Foodbank in the city, she was referred to Sheffield Christians Against Poverty (CAP) whose staff helped her to apply for a Debt Relief Order, which can now be done for free.
Karen said freeing herself from all the money she had owed was “like a weight being lifted” and she had since learned how to budget better.
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‘Burden of debt’
A £90 charge for applying for a Debt Relief Order was scrapped in April.
As a result, the number of applications in September 2024 was almost double the figure for the previous September, rising from 2,958 to a record high of 4,032.
Jayne Franklin, centre manager for Sheffield CAP, said the change had made a huge difference.
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“It’s given us hope that we can get people debt-free quicker, so they haven’t got the burden of debt hanging around over them.”
Karen admitted that before she had sought advice over her debts she was “in a total mess” and she no longer even answered her door.
“I didn’t have anybody round, or my grandkids over for their tea, or anything like that, because I didn’t know what to feed them,” she said.
After getting help from Sheffield CAP and being told that she was able to apply for a Debt Relief Order at no charge, she said she now took much more care with her finances.
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“I’ve never learned how to budget, but since I’ve been debt-free I’ve been on a budgeting course,” she said.
Charities such as this one in Sheffield can help people to apply for Debt Relief Orders free of charge
The scrapping of the £90 fee to apply for a Debt Relief Order has come at a time when an increasing number of people have continued to struggle with the cost of everyday bills.
New research for the Financial Inclusion Commission (FIC) carried out by Birmingham University suggests that one in five adults have increased their borrowing to cover higher living costs, while one in six families have no savings.
The FIC has called for what it describes as a National Inclusion Strategy to help people struggling with debts, and to give people support to access basics like a current account.
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Meanwhile, debt advice service Money Wellness has warned that it was becoming increasingly easy to fall into the red.
In August 2023, staff at the service dealt with 408 people with buy now, pay later debts, but by August 2024 that number had risen to 1,258.
Sebrina McCullogh, director of external affairs at Money Wellness, said more and more people were “being forced into a position where they are using credit like buy now, pay later to just make it through to the end of the month”.
“They are using it for smaller transactions, as opposed to using it to spread the costs of those larger transactions which really is what buy now, pay later as a product is intended to be used for.”
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Morgan, in Liverpool, said he now advised friends to avoid buy now, pay later schemes
Morgan, 25, from Liverpool, said he warned all his friends to steer clear of buy now, pay later.
He said that after he fell behind on a repayment to Klarna – the UK’s biggest buy now, pay later lender – he took out a credit card loan to pay it off.
Morgan said he had spent the past three years working his way out of that increasing spiral of debt.
“It just made me worse in life. I just wasn’t myself,” he said.
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“I just turned to a closed shell, I was hot-headed, stressed, depressed.”
Morgan said it felt like all his friends had some kind of buy now, pay later loan, but added that he was determined never to take out another.
He said he had “learned my lesson now”, explaining that he considered himself lucky that he had managed to rent his current home for himself and his family despite his credit rating.
“I can just focus on getting my life back on track now,” he said.
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In a statement, Klarna said it ran an eligibility check on every new purchase, adding that average customer debts were still well below that of credit cards.
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