Latest news with #LAP
Time of India
a day ago
- Business
- Time of India
ETtech Explainer: Why are fintechs and their investors going after secured loans?
Live Events More and more fintech lending startups focusing on secured credit products such as loans against property (LAP), and loans against securities like mutual funds, are attracting venture capital (VC) home financing players like Vridhi Home Finance, Basic Home Loans, Easy Home Finance and others have been attracting venture investors, with their promise to bring about technology disruption in the sector. ETtech explains:Secured lending business is a financial service that provides loans to borrowers against collateral such as a vehicle or property. While banks and traditional non-banking financial companies (NBFCs) have been offering secured credit like home loans and auto loans for years, fintechs stayed away from these products, given the need for physical operations to evaluate the properties and assets. But now, startups are investing in branches and are building on-street teams to manage these shift comes as unsecured lending platforms witness a slowdown in the market, prompting startups to move towards secured credit products. Fintech platforms, including Paytm and Mobikwik, faced revenue pressure as banks and NBFCs scaled back on unsecured lending over the last few quarters. Even new-age NBFCs like Fibe, Kissht and others have seen stress on their books as new loan sanctioning slowed down. These trends have led to fintechs scouting for opportunities in secured Home Finance, Basic Home Loan, and Vridhi Home Finance together received nearly $150 million in equity capital from venture funds like Elevation Capital, Bertelsmann India Investments, Norwest Venture Partners, and Ranjan Pai's Claypond Capital. Mahaveer Finance, an NBFC based in Chennai, has raised $23 million from Elevation Capital and others with the aim of adding LAP and other similar NBFC Techfino has recently raised around $7.5 million from Stellaris Venture Partners and Saison Capital. Founded in 2019, the fintech company operates secured and unsecured lending models. The company focusses on secured more businesses move towards secured products, the unsecured lending startups are jumping onto the bandwagon. Fintech players Cred, BharatPe, and Paytm have announced a similar entry into secured products over the past year. Unsecured lending players like Kissht, Loantap, Fibe, and Kreditbee ventured into secured lending products such as are reducing their operational costs by making branches more efficient and leveraging technology to save costs and compete with big businesses. 'Traditionally, 70% to 80% of a housing finance company's costs go into running physical branches. We're bringing that down to 40% to 50% by leveraging technology, which enables lower customer acquisition costs and better interest rates,' said Atul Monga, CEO, Basic Home banks and larger NBFCs, branch expansions, while keeping costs in control, will remain a challenge for these while being attractive, tends to show up high non-performing assets (NPAs), which means fintechs will need to invest in strong collection teams. TransUnion Cibil's data released in January showed that LAP books showed among the highest NPA trends. As of September 2024, 1.7% of the LAPs were due for 90 days or more, said the report.'Investments in physical assets and branches would eat into the delta that fintechs can make between the cost of borrowing and rates they can offer their customers,' said Rohit Chokhani, founder, Easy Home Finance. 'This business will be sustainable only when there is a major scale.'
Time of India
2 days ago
- Business
- Time of India
As fintech lenders chase secured credit options, VCs up their bets
As unsecured lending slows, investor interest is shifting to secured lending platforms, attracting significant venture capital. Startups are expanding into secured loans like LAP and vehicle financing, but face challenges like high operational costs and default risks. Fintechs aim to offset this with technology-driven efficiency and selective physical branch expansion. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The slowdown in the unsecured consumer credit market is resulting in an increase in investor interest in secured lending platforms, a sector dominated by traditional financiers till the past one year, venture funds which typically fund tech-first companies have been betting on home financing startups , branch-led secured lenders offering products such as loans against property (LAP), loans against securities like mutual funds, vehicle lending companies and asset-based lenders. Easy Home Finance , Basic Home Loan and Vridhi Home Finance received significant equity infusions from venture funds such as Elevation Capital, Bertelsmann India Investments, Norwest Venture Partners and Ranjan Pai's Claypond Capital. Together these startups, founded between 2017 and 2022, have raised around $150 million in equity capital from these recently, Techfino raised around $7.5 million (Rs 65 crore) from Stellaris Venture Partners and others. Mahaveer Finance, which has been lending for used vehicles since the early 1990s, raised $23 million (Rs 200 crore) from Elevation Capital and others with an aim to add LAP and other similar products to its portfolio.'When we look at NBFCs (non-banking financial companies), we typically index on highly experienced promoters or founders, great track record on execution, prudent approach to risk management and underwriting, and a technology driven mindset,' said Mridul Arora, partner, Elevation Capital. 'Valuation multiples, however, are more a function of market cycle and risk-reward for that particular investment versus being determined by whether it is family owned or not.'With the winds blowing towards secured products, even well-funded unsecured consumer lending startups are jumping onto the such as Kissht, Loantap, Fibe and Kreditbee, all unsecured consumer lending players, have now built secured products including LAP, mutual funds and vehicle loans. Among the large fintechs, Cred, BharatPe and Paytm have also announced their entry into secured credit products over the past one of these players like Kreditbee are also looking to build branch networks, hoping to underwrite the underlying assets better.'We have run down our consumer lending book by 50%. Now the focus is to build small business loans for retailers,' said Satyam Kumar, CEO of Pune-based startup recently closed $6.2 million in equity funding from July Ventures and a strong understanding of certain customer cohorts, these startups feel that they can scale up secured products quickly catering to consumers who might be too risky for an unsecured personal secured lending is a major opportunity to compete with banks and larger NBFCs, fintechs will need to invest heavily in branch could push up costs and make the small ticket size lending business unviable.'Investments in physical assets and branches would eat into the delta that fintechs can make between the cost of borrowing and the rates they can offer to their customers,' said Rohit Chokhani, founder, Easy Home Finance. 'This business will be sustainable only when there is major scale.'Add to that the need to build collection teams, another major cost item, given that these loans would require agents to take possession of machinery or property in the wake of a released in January by TransUnion Cibil on the credit market in India showed that as of September 2024, 1.7% of the loans under LAP were due for at least 90 days, among the highest in all categories of consumer compete with the traditional bigwigs, these startups are trying to disrupt two major business areas – one, to reduce the operational cost through technology and, second, to ensure that the online application forms can weed out unwanted customers without human intervention.'Traditionally, 70 to 80% of a housing finance company's costs go into running physical branches. We're bringing that down to 40 to 50% by leveraging technology, which enables lower customer acquisition costs and better interest rates,' said Atul Monga, chief executive officer, Basic Home LoanCurrently, customers can be charged 25-27% for micro LAP products, way more than 15-20% for a personal loan. Startups are trying to find out whether technology can help reduce these costs.'We have built our in-house loan origination and loan management systems, which helps make the entire application process digital. We will still invest in expanding our branch network over the years, but back-end processes need to be technology-led,' said Ratikanta Satpathy, cofounder, Techfino.
Yahoo
11-06-2025
- Business
- Yahoo
Lima's new airport continues to face passenger complaints
June 11 (UPI) -- Only two weeks after opening, Lima's new Jorge Chávez International Airport has experienced multiple operational problems, including recurring flight cancellations. Three domestic flights were canceled Tuesday, according to Peru's Radio Exitosa. Between 18 and 25 flights were canceled in the airport's first days of operation, mostly due to fuel distribution failures. Passengers have also voiced frustration over long lines at both baggage check-in and immigration. The departure area for immigration is about 40% smaller, and the arrivals area 20% smaller, than in the previous terminal, according to reports. The limited space has caused crowding, especially during peak hours with several flights operating at once. The airport's opening marked a milestone in Peru's infrastructure development. With more than $2.4 billion invested, the project -- managed by Lima Airport Partners (LAP) -- is the country's most ambitious transportation effort to date. Its goal is to make Lima the air hub of the South Pacific. However, since opening June 1, the new terminal has faced criticism over operational and logistical efficiency. The new airport spans 935 hectares -- three times the size of the previous terminal -- and is designed to handle up to 40 million passengers annually by 2030. That would put Lima on par with regional hubs such as São Paulo and Bogotá. The project was designed to capture the growing flow of connecting passengers between South America, North America and Europe, while boosting the country's foreign trade and tourism -- sectors that account for about 2.9% of Peru's GDP. However, the terminal opened with multiple deficiencies, several of which were blamed on the lack of stress testing before operations began. In addition to fuel supply failures that caused flight cancellations, water leaks were reported in some airline offices. However, the most serious criticism focused on the runway design, as only 2,588 of the required 3,500 meters are currently usable -- raising concerns about the safe takeoff of fully loaded intercontinental flights. In response, LAP rejected claims that the runway was delivered in an incomplete or unsafe condition. The company said the infrastructure follows the approved design, which is being developed in phases and is operating under recognized standards. LAP said all operations -- including taxiing, takeoff and landing -- meet international standards and are certified by Peru's Directorate General of Civil Aviation (DGAC) and other regulatory agencies. The lack of road and rail access to the new terminal has also drawn criticism. The main route is a congested city street, and the Metro station linking to the airport isn't expected to open until 2027. The implementation of a Unified Airport Usage Fee (TUUA) for connecting passengers has drawn criticism. Unlike more efficient regional hubs such as Panama's Tocumen Airport -- where connecting travelers pay reduced fees or are exempt -- Lima charges the full rate. Peru's Ministry of Transport and Communications has defended the project as a long-term endeavor. "This airport marks a new stage for Peru's economy and its integration into the global market," Transport Minister Raúl Pérez Reyes said. However, economists and logistics groups have urged caution. Poor coordination of road projects, Metro delays and limited initial operations have raised doubts about intersectoral planning. To meet the 2030 target, experts say Peru must improve not only physical infrastructure, but also operational efficiency, regulatory stability and competitive pricing.
UPI
11-06-2025
- Business
- UPI
Lima's new airport continues to face passenger complaints
Travelers gather inside the Jorge Chávez International Airport in Peru, on May 30. The airport has experienced multiple operational problems, including recurring flight cancellations. Photo by Paolo Aguilar/EPA-EFE June 11 (UPI) -- Only two weeks after opening, Lima's new Jorge Chávez International Airport has experienced multiple operational problems, including recurring flight cancellations. Three domestic flights were canceled Tuesday, according to Peru's Radio Exitosa. Between 18 and 25 flights were canceled in the airport's first days of operation, mostly due to fuel distribution failures. Passengers have also voiced frustration over long lines at both baggage check-in and immigration. The departure area for immigration is about 40% smaller, and the arrivals area 20% smaller, than in the previous terminal, according to reports. The limited space has caused crowding, especially during peak hours with several flights operating at once. The airport's opening marked a milestone in Peru's infrastructure development. With more than $2.4 billion invested, the project -- managed by Lima Airport Partners (LAP) -- is the country's most ambitious transportation effort to date. Its goal is to make Lima the air hub of the South Pacific. However, since opening June 1, the new terminal has faced criticism over operational and logistical efficiency. The new airport spans 935 hectares -- three times the size of the previous terminal -- and is designed to handle up to 40 million passengers annually by 2030. That would put Lima on par with regional hubs such as São Paulo and Bogotá. The project was designed to capture the growing flow of connecting passengers between South America, North America and Europe, while boosting the country's foreign trade and tourism -- sectors that account for about 2.9% of Peru's GDP. However, the terminal opened with multiple deficiencies, several of which were blamed on the lack of stress testing before operations began. In addition to fuel supply failures that caused flight cancellations, water leaks were reported in some airline offices. However, the most serious criticism focused on the runway design, as only 2,588 of the required 3,500 meters are currently usable -- raising concerns about the safe takeoff of fully loaded intercontinental flights. In response, LAP rejected claims that the runway was delivered in an incomplete or unsafe condition. The company said the infrastructure follows the approved design, which is being developed in phases and is operating under recognized standards. LAP said all operations -- including taxiing, takeoff and landing -- meet international standards and are certified by Peru's Directorate General of Civil Aviation (DGAC) and other regulatory agencies. The lack of road and rail access to the new terminal has also drawn criticism. The main route is a congested city street, and the Metro station linking to the airport isn't expected to open until 2027. The implementation of a Unified Airport Usage Fee (TUUA) for connecting passengers has drawn criticism. Unlike more efficient regional hubs such as Panama's Tocumen Airport -- where connecting travelers pay reduced fees or are exempt -- Lima charges the full rate. Peru's Ministry of Transport and Communications has defended the project as a long-term endeavor. "This airport marks a new stage for Peru's economy and its integration into the global market," Transport Minister Raúl Pérez Reyes said. However, economists and logistics groups have urged caution. Poor coordination of road projects, Metro delays and limited initial operations have raised doubts about intersectoral planning. To meet the 2030 target, experts say Peru must improve not only physical infrastructure, but also operational efficiency, regulatory stability and competitive pricing.
Otago Daily Times
02-05-2025
- Politics
- Otago Daily Times
Council set to put issue of glass bottles back in play
The issue of glass bottles in North Dunedin is about to become a "high-priority topic" as the council prepares to send its alcohol policy back to the drawing board. The Dunedin City Council developed a draft local alcohol policy (Lap) that was expected to come into effect earlier this year. However, at Wednesday's council meeting, hearings committee chairman Jim O'Malley said the policy had been recommended for reconsultation, expected to begin in 2026, and to include formal discussions on the sale of glass bottles around the University of Otago. At hearings in December, police called for a ban on the sale of alcohol in glass containers that had a volume 500ml or less from premises within a 1200m radius of the university, which they defined as 362 Leith St. Cr O'Malley said the "glass problem" had not been part of the consultation document but the council needed to directly consult the North Dunedin community before a decision was made. "It is clearly going to move to a high-priority topic," he said. There had not been "sufficient engagement" on the LAP with the council's partner agencies, he said. "We felt as a committee that it was better to do the process properly, because it's a six-year period, than to go forward with what we considered was a not properly consulted-on pre-consultation document." The current policy came into effect in February 2019. The council is required to review it within six years. Cr O'Malley said while the existing LAP would lapse, it "effectively" remained in place until updated. Dunedin was one of about half a dozen cities that would have lapsed alcohol policies. The draft plan contained several proposed changes, including reducing the time off-licence premises could sell alcohol by an hour, banning promotion of alcohol on the exterior of premises and a temporary freeze on new off-licence premises north of the Octagon. A council spokesman said a report on the matter would go to the council in coming months.
