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Imagine this. You have a younger sibling you’re mighty envious of. And why not? Unlike you, they seem to enjoy all the freedom and money in the world. They party like there’s no tomorrow, and here you are, stuck in a boring, ultra-disciplined but responsible routine that feels completely devoid of any independence, and mostly, funds. But of late, things are changing. This sibling is in massive trouble and just cannot escape the parent’s wrath anymore. Long story short, the party is over, and it is time to go back home. The rising defaults on this sibling’s part have now begun pulling the entire house down, thereby attracting the regulator’s ire. <h2>The Wild West of microfinance and unsecured loans</h2>It's hard to ignore the issues with microfinance and unsecured loans in India. Many saw them as a small gamble and ignored the rising defaults much like the younger siblings’ tantrums, and now they find themselves in hot waters. The skyrocketing instances of non-payments aren't a micro-issue anymore and are threatening the stability of the entire banking system. In the quarter ended September 30, 2024, 5 of India’s 8 largest private sector <keyword id="19934118" type="General" weightage="20" keywordseo="banks" source="keywords">banks</keyword> reported a steep rise in their bad loan book, mostly thanks to microfinance loans. Some banks, in a bid to strengthen their fortress against these <keyword id="142154" type="General" weightage="100" keywordseo="bad-loans" source="Orion">bad loans</keyword>, have significantly upped their provisions. For instance, <keyword id="46717" type="General" weightage="20" keywordseo="IndusInd-bank" source="Orion">IndusInd Bank</keyword> set aside Rs 525 crore during July and September 2024 to battle the menace of defaults on microfinance loans, which make up about 9% of its total loan book. See, banks rely heavily on their interest income, which they earn from advancing loans. Any loan where the borrower has not paid interest to the bank or defaulted for 90 days or more becomes bad, i.e., an <keyword id="79363" type="General" weightage="20" keywordseo="npa" source="Orion">NPA</keyword>, or non-performing asset for the bank. And who likes things going bad? Simply put, there has been a steep rise in three areas, much to the dislike of banks and MFIs (micro-finance institutions). But hey, it's mostly their doing! <ol><li>GNPA ratio (gross net performing assets): The quantum of non-performing assets a bank has in proportion to its total assets.</li><li>Provision: The amount banks set aside to take care of such NPAs.</li><li>Slippage ratio: The rate at which good girls go bad, or the speed at which good loans turn into NPAs</li></ol>But how are these plaguing the Indian banking sector? And what does the road ahead look like? We decode it for you. <h2> Microfinance: A not-so-micro-menace</h2>Microfinance loans were initially brought forth for low-income households and individuals, i.e. for those who might not generally have access to traditional ways of credit, like bank loans and more. They don’t require collateral or an asset to be pledged in lieu of the loan, making it a tad bit easier for borrowers. As of June 2024, the amount of outstanding loans in the microfinance industry stood at a staggering Rs 4,20,256 crore. Of this, NBFC-MFIs accounted for 40% and banks made for 33% of these. In 2022, <keyword id="30067" type="General" weightage="20" keywordseo="RBI" source="Orion">RBI</keyword>, in a bid to inspire some competition in this space, did something radical-they did away with the ceiling on how much interest MFIs could charge their customers. Previously, MFIs could add up to 12% to their cost of acquiring funds to determine the final interest rate chargeable to the consumer. So, assuming that Bank A incurs a 5% cost to acquire funds for further loaning, A could charge up to 17% interest from the end consumer. So, interest rates were in the hands of MFIs, and boy, did they have a gala time with it. Instead of spurring some healthy competition, as RBI expected, MFIs and banks went rogue and all guns blazing, competing for the title of “Who will charge the highest interest?” Recently, RBI banned 4 microfinance institutions (MFIs), namely Asirvad Micro Finance Limited, Arohan Financial Services Limited, DMI Finance Private Limited, and Navi Finserv, from disbursing loans effective October 21, 2024. Why? Because they were charging 14% extra interest over their original cost of funds. To maintain their loan books (and pockets), banks and NBFCs resorted to shady practices like netting off loans, which RBI has now advised MFIs against. Here, lenders allow borrowers to settle a previous outstanding loan by issuing them a new loan! As crazy as it sounds, it helped banks to report less of their total assets as NPAs, since the new credit would cover pending installments of the borrower’s previous loan. Then there was the issue of borrowers overleveraging, i.e. taking multiple loans using different IDs from various lenders and then failing to honor any of them. The consequence? Banks and NBFCs end up with massive NPAs. Data from credit bureaus suggests that over the last quarter, there was a 17.2% rise in the number of borrowers who had 5 or more active loans at the same time. <h2>Growth &gt; Caution</h2>It's an age-old tale unfolding yet again in India’s banking sector- Icarus flew too close to the sun and eventually, fell to its death. Between April and June 2024, NBFCs microfinance portfolio jumped by 2.7%. If you see this in terms of loan sources, microfinance loans issued by banks grew by 11.2% in Q1FY25. But the same portfolio in NBFCs swelled by almost double-23.9%. While most of these loans had an average ticket size between Rs 30,000-50,000, there was a sharp spike in the number of loans that had a ticket size of Rs 80,000 or more. Data suggests that as of March 2024, more than 12% of all microfinance borrowers had over 4 or more active loans. In dating parlance, this is a classic case of borrowers going polyamorous, minus the honesty and transparency. Not the best of situations, you'd agree! <h2>Will banks and NBFCs stand up to this stress?</h2>If their results for Q2FY25 are to be believed, NBFCs are not handling the pressure all that well. Or even slightly well. Only a few banks like Bank of Baroda (BoB), ICICI, and Indian Bank were up for the battle, even witnessing a decline in their loan delinquencies. Some others, like IndusInd Bank, saw their stock dip by a massive 16.2% over the last 5 days. Its slippages in the previous quarter burgeoned from Rs 15.3 billion in Q1FY25 to Rs 17.9 billion in Q2. As a result, the bank pushed a staggeringly high amount of money to create an NPA cushion for itself. While its management has highlighted its preference for secured lending, that was hardly reflected in its actions during the quarter, where growth in unsecured personal loans remained exceptionally high at over 7% on a QoQ basis. Turns out, only 44% of customers in IndusInd Banks’ microfinance loan portfolio were exclusive to it. The rest 47% were, you guessed it right-polyamorous! 27% had borrowed from another lender as well, apart from IndusInd Bank, while 20% were those who had outstanding loans with two other lenders, apart from IndusInd Bank. IndusInd Bank’s credit card segment did not miss the NPA bus and accounted for 7-8% of its GNPAs. Canara Bank’s total slippages during the previous quarter jumped to Rs 11.1 billion, up by 24.7% QoQ, and making up for 3.6% of its total loans. As for Bandhan Bank, its <keyword id="763994" type="General" weightage="20" keywordseo="Gross-NPA" source="Orion">gross NPA</keyword> for Q2FY25 inched up on a QoQ basis, up from 4.23% in Q1, to 4.68% in the second quarter. <keyword id="62152" type="General" weightage="20" keywordseo="IDFC-bank" source="Orion">IDFC Bank</keyword>’s heavy provisioning for its NPAs marred its profits significantly, causing its PAT (profit after tax) to dip by 73% on a YoY basis. Data from ICRA Analytics suggest that the AUM (asset under management) growth in microfinance loans and unsecured (personal and business) loans by the NBFCs will moderate to 10-12% and 19-21%, respectively, in FY2025 compared to 30% and 38%, in FY2024. Says A M Karthik, Senior Vice President &amp; Co-Group Head, Financial Sector Ratings, ICRA, “As bank funds constitute a larger share in the overall funding of NBFCs, a slower credit flow from banks to the NBFCs will compress their AUM growth. The NBFCs in unsecured and digital lending businesses shall face a higher squeeze in funding compared to others, and the unsecured lending space will continue to be a source of stress in the near term.” There has been uninhibited growth in unsecured loans, apart from just the microfinance segment. For instance, Axis Bank’s gross slippages jumped by Rs 4,443 crore, largely thanks to its unsecured business. The same is the case with Yes Bank, which saw 35–40% of its retail slippages emerging from the unsecured loan portfolio. Kotak Mahindra Bank was also quick to follow Yes Bank’s suit, with around 35%-40% of its slippages coming from credit cards. <h2>How is the road ahead?</h2>While RBI has just cracked its whip and served a warning at the moment, experts at Morgan Stanley believe that more changes (read regulatory lashes) are underway. Moreover, with both festive and wedding seasons underway in our country, unsecured lending might pick up momentum, much to the disdain of the calibrated approach banks have been taking towards it so far. But if the situation doesn't improve, RBI will not waste any time in becoming the typical tyrannical Bollywood headmaster who runs his dominion with an iron fist and takes things (and ceiling rates) into their own hands. However, that's a story for another day.

Is the lending party over? The dangerous tango of Indian banks with microfinance and unsecured loans

<div type="image" title="The RBI has cracked the regulatory whip on NBFCs and banks, who&amp;#39;ve been pushing microfinance and unsecured loans aggressively to grow their loan books." agency="ANI" msid="114778648" hostid="261" caption="&amp;lt;p&amp;gt;The RBI has cracked the regulatory whip on NBFCs and banks, who&amp;#39;ve been pushing microfinance and unsecured loans aggressively to grow their loan books.&amp;lt;/p&amp;gt;"></div> Imagine this. You have a younger sibling you’re mighty envious of. And why not? Unlike you, they seem to enjoy all the freedom and money in the world. They party like there’s no tomorrow, and here you are, stuck in a boring, ultra-disciplined but responsible routine that feels completely devoid of any independence, and mostly, funds. But of late, things are changing. This sibling is in massive trouble and just cannot escape the parent’s wrath anymore. Long story short, the party is over, and it is time to go back home. The rising defaults on this sibling’s part have now begun pulling the entire house down, thereby attracting the regulator’s ire. <h2>The Wild West of <keyword id="113684" type="General" weightage="20" keywordseo="microfinance" source="Orion">microfinance</keyword> and unsecured loans</h2>It's hard to ignore the issues with microfinance and unsecured loans in India. Many saw them as a small gamble and ignored the rising defaults much like the younger siblings’ tantrums, and now they find themselves in hot waters. The skyrocketing instances of non-payments aren't a micro-issue anymore and are threatening the stability of the entire banking system. In the quarter ended September 30, 2024, 5 of India’s 8 largest private sector <keyword id="19934118" type="General" weightage="20" keywordseo="banks" source="keywords">banks</keyword> reported a steep rise in their bad loan book, mostly thanks to microfinance loans. Some banks, in a bid to strengthen their fortress against these <keyword id="142154" type="General" weightage="100" keywordseo="bad-loans" source="Orion">bad loans</keyword>, have significantly upped their provisions. For instance, IndusInd Bank set aside Rs 525 crore during July and September 2024 to battle the menace of defaults on microfinance loans, which make up about 9% of its total loan book. See, banks rely heavily on their interest income, which they earn from advancing loans. Any loan where the borrower has not paid interest to the bank or defaulted for 90 days or more becomes bad, i.e. an NPA, or non-performing asset for the bank. And who likes things going bad? Simply put, there has been a steep rise in three areas, much to the dislike of banks and MFIs (micro-finance institutions). But hey, it's mostly their doing! <ol><li>GNPA ratio (gross net performing assets): The quantum of non-performing assets a bank has in proportion to its total assets.</li><li>Provision: The amount banks set aside to take care of such NPAs.</li><li>Slippage ratio: The rate at which good girls go bad, or the speed at which good loans turn into NPAs</li></ol>But how are these plaguing the Indian banking sector? And what does the road ahead look like? We decode it for you. <h2> Microfinance: A not-so-micro-menace</h2>Microfinance loans were initially brought forth for low-income households and individuals i.e. for those who might not generally have access to traditional ways of credit, like bank loans and more. They don’t require collateral or an asset to be pledged in lieu of the loan, making it a tad bit easier for borrowers. As of June 2024, the amount of outstanding loans in the microfinance industry stood at a staggering Rs 4,20,256 crore. Of this, NBFC-MFIs accounted for 40% and banks made for 33% of these. In 2022, RBI, in a bid to inspire some competition in this space, did something radical-they did away with the ceiling on how much interest MFIs could charge their customers. Previously, MFIs could add up to 12% to their cost of acquiring funds to determine the final interest rate chargeable to the consumer. So, assuming that Bank A incurs a 5% cost to acquire funds for further loaning, A could charge up to 17% interest from the end consumer. So, interest rates were in the hands of MFIs, and boy, did they have a gala time with it. Instead of spurring some healthy competition, as RBI expected, MFIs and banks went rogue and all guns blazing, competing for the title of “Who will charge the highest interest?” Recently, RBI banned 4 microfinance institutions (MFIs), namely Asirvad Micro Finance Limited, Arohan Financial Services Limited, DMI Finance Private Limited, and <keyword id="20117932" type="General" weightage="20" keywordseo="navi-finserv" source="keywords">Navi Finserv</keyword> from disbursing loans effective October 21, 2024. Why? Because they were charging 14% extra interest over their original cost of funds. To maintain their loan books (and pockets), banks and NBFCs resorted to shady practices like netting off loans, which RBI has now advised MFIs against. Here, lenders allow borrowers to settle a previous outstanding loan by issuing them a new loan! As crazy as it sounds, it helped banks to report less of their total assets as NPAs, since the new credit would cover pending instalments of the borrower’s previous loan. Then there was the issue of borrowers overleveraging, i.e. taking multiple loans using different IDs from various lenders and then failing to honour any of them. The consequence? Banks and NBFCs end up with massive NPAs. Data from credit bureaus suggests that over the last quarter, there was a 17.2% rise in the number of borrowers who had 5 or more active loans at the same time. <h2>Growth &gt; Caution</h2>It's an age-old tale unfolding yet again in India’s banking sector- Icarus flew too close to the sun and eventually, fell to its death. Between April and June 2024, NBFCs microfinance portfolio jumped by 2.7%. If you see this in terms of loan sources, microfinance loans issued by banks grew by 11.2% in Q1FY25. But the same portfolio in NBFCs swelled by almost double-23.9%. While most of these loans had an average ticket size between Rs 30,000-50,000, there was a sharp spike in the number of loans that had a ticket size of Rs 80,000 or more. Data suggests that as of March 2024, more than 12% of all microfinance borrowers had over 4 or more active loans. In dating parlance, this is a classic case of borrowers going polyamorous, minus the honesty and transparency. Not the best of situations, you'd agree! <h2>Will banks and NBFCs stand up to this stress?</h2>If their results for Q2FY25 are to be believed, NBFCs are not handling the pressure all that well. Or even slightly well. Only a few banks like Bank of Baroda (BoB), ICICI, and Indian Bank were up for the battle, even witnessing a decline in their loan delinquencies. Some others, like IndusInd Bank, saw their stock dip by a massive 16.2% over the last 5 days. Its slippages in the previous quarter burgeoned from Rs 15.3 billion in Q1FY25 to Rs 17.9 billion in Q2. As a result, the bank pushed a staggeringly high amount of money to create an NPA cushion for itself. While its management has highlighted its preference for secured lending, that was hardly reflected in its actions during the quarter, where growth in unsecured personal loans remained exceptionally high at over 7% on a QoQ basis. Turns out, only 44% of customers in IndusInd Banks’ microfinance loan portfolio were exclusive to it. The rest 47% were, you guessed it right-polyamorous! 27% had borrowed from another lender as well, apart from IndusInd Bank, while 20% were those who had outstanding loans with two other lenders, apart from IndusInd Bank. IndusInd Bank’s credit card segment did not miss the NPA bus and accounted for 7-8% of its GNPAs. Canara Bank’s total slippages during the previous quarter jumped to Rs 11.1 billion, up by 24.7% QoQ, and making up for 3.6% of its total loans. As for Bandhan Bank, its gross NPA for Q2FY25 inched up on a QoQ basis, up from 4.23% in Q1, to 4.68% in the second quarter. IDFC Bank’s heavy provisioning for its NPAs marred its profits significantly, causing its PAT (profit after tax) to dip by 73% on a YoY basis. Data from ICRA Analytics suggest that the AUM (asset under management) growth in microfinance loans and unsecured (personal and business) loans by the NBFCs will moderate to 10-12% and 19-21%, respectively, in FY2025 compared to 30% and 38%, in FY2024. Says A M Karthik, Senior Vice President &amp; Co-Group Head, Financial Sector Ratings, ICRA, “As bank funds constitute a larger share in the overall funding of NBFCs, a slower credit flow from banks to the NBFCs will compress their AUM growth. The NBFCs in unsecured and digital lending businesses shall face a higher squeeze in funding compared to others, and the unsecured lending space will continue to be a source of stress in the near term.” There has been uninhibited growth in <keyword id="6051027" type="General" weightage="20" keywordseo="Unsecured-loan" source="Orion">unsecured loan</keyword>s, apart from just the microfinance segment. For instance, Axis Bank’s gross slippages jumped by Rs 4,443 crore, largely thanks to its unsecured business. The same is the case with Yes Bank, which saw 35–40% of its retail slippages emerging from the unsecured loan portfolio. <keyword id="6376194" type="General" weightage="20" keywordseo="kotak-mahindra" source="Orion">Kotak Mahindra</keyword> Bank was also quick to follow Yes Bank’s suit, with around 35%-40% of its slippages coming from credit cards. <h2>How is the road ahead?</h2>While RBI has just cracked its whip and served a warning at the moment, experts at Morgan Stanley believe that more changes (read regulatory lashes) are underway. Moreover, with both festive and wedding seasons underway in our country, unsecured lending might pick up momentum, much to the disdain of the calibrated approach banks have been taking towards it so far. But if the situation doesn't improve, RBI will not waste any time in becoming the typical tyrannical <keyword id="19897820" type="General" weightage="20" keywordseo="bollywood" source="keywords">Bollywood</keyword> headmaster who runs his dominion with an iron fist. However, that's a story for another day. Do you have a topic in mind you'd want a simpler explanation for, or insights or personal experience to share on personal finance and more? Contact us at businessinsider@timesinternet.in.

Simply Put: Is the lending party over? The dangerous tango of Indian banks with microfinance and unsecured loans

<ul class="summary-list"><li>In 2023, Kristi Campbell moved into South Park Cottages, a micro-home community in Atlanta. </li><li>Campbell owns a 628-square-foot home with one bedroom and one bathroom, purchased for $235,000.</li></ul>This as-told-to essay is based on a conversation with Kristi Campbell, a 28-year-old business consultant, who moved into micro-home community <a target="_blank" href="https://www.businessinsider.com/tiny-home-village-atlanta-south-park-cottages-photos-booker-washington-2024-3">South Park Cottages</a> in 2023. The essay has been edited for length and clarity.In 2020, I left <a target="_blank" href="https://www.businessinsider.com/where-are-tech-employees-moving-leaving-ny-austin-la-denver-2024-4">New York </a>after living there for seven years, pursuing both my master's and bachelor's degrees, and working as a consultant. The city is all about hustling and bustling, and I realized it wasn't necessarily for me.When the pandemic hit, I thought it was a great time to move back to <a target="_blank" href="https://www.businessinsider.com/atlanta-georgia-own-business-entrepreneurship-work-employment-careers-jobs-linkedin-2023-9">East Atlanta</a> and my parents' house where I was raised. The plan was to move out and buy my first home by November 2023. I had even saved up $10,000.In 2022, my boyfriend sent me a link to South Park Cottages' website, a Black-owned tiny home village. I absolutely fell in love.The village's homes are newly built with a modern aesthetic. It's also close to the airport and Main Street in downtown Atlanta, where there's a strip of black-owned restaurants and stores.I put in an offer for a tiny home in November 2022 and officially closed in June 2023. I own a 628 square foot home that I purchased for $235,000 and have a 30-year fixed mortgage with a monthly payment of $2,150.South Park Cottages afforded me the opportunity to buy my first home sooner than planned — it was the official stamp for adulthood.<h2>It's nice to have a space of my own</h2>When I applied, the community was still being developed (I saw my home's construction framing and trusted the developer). It gave me an opportunity to save up more money.Before I was even considered for a home at South Park Cottages, I had to be pre-approved for the full loan amount of the home.I chose South Park Cottages' preferred lender, along with a preferred closing attorney.The lending process for the tiny home worked like a traditional mortgage, requiring the same paperwork: The lender wanted to see my income and bank statements from the past two years to make sure I had consistent work.When I was approved, I put down a $17,500 deposit. It covered the builder's fee and an upgraded tech package for my home, which included a smart door lock, a doorbell camera, a smart refrigerator, and Bluetooth speakers.<div type="image" title="Kristi Campbell in holding the keys for her new tiny home." height="621" width="829" msid="109738798" hostid="261" sizebytes="38556"></div>When I got the keys to my home, I was overwhelmed — in a good way. I was elated to have something that I could create and that was mine.I have a one bedroom and one bathroom, a patio, a balcony, as well as a multi-use loft space that I turned into an office.I consider myself to be a <a target="_blank" href="https://www.businessinsider.com/interior-design-renovation-diy-haunted-mansion-victorian-maximalism-2023-11">maximalist</a>, but when you move into a tiny home, you eventually realize that you actually don't need a lot of things.I have a storage unit for equipment and other supplies, but I got rid of a lot of clothes, shoes, bags, and furniture.Despite <a target="_blank" href="https://www.businessinsider.com/house-hacking-live-in-adu-rent-out-main-home-2024-4">downsizing,</a> I still think the home is pretty spacious. On my mom's birthday in January, my entire family came over to my house, and we fit about 20 people in here.<h2>The community feels safe and welcoming</h2>South Park Cottages is predominantly Black and millennial, but it's still very diverse.For a few homeowners here, their tiny home is an investment property, while for others, it's a second vacation home.A lot of us share similar stories and backgrounds — we're <a target="_blank" href="https://www.businessinsider.com/zandi-moodys-house-prices-mortgage-interest-rates-affordability-crisis-market-2024-1">first-time homebuyers</a>, and mostly born and raised in Atlanta, though I think there are two or three people from California. It's exciting to know I can learn from people around me who are going through similar life phases.One of my favorite things about the village is that it's really community oriented; we're all very tight knit. Neighbors look out for neighbors.We usually eat on our patios or in front of our homes and wave to each other. There's also communal areas in the village like a garden and a fire pit, where residents regularly have cookouts. And residents celebrate a lot of housewarmings as well.When you look at the community, it's like something you've never seen before in Atlanta and I love that.<h2>I plan to buy another home in the future</h2>South Park Cottages in more ways than one way changed my life.When I moved back to Georgia, getting an apartment was never going to be part of the plan; I was determined that my next step had to be homeownership.But the <a target="_blank" href="https://www.businessinsider.com/real-estate-housing-market-home-prices-mortgage-rates-home-affordability-2024-4#17-atlanta-georgia-17">home prices in Atlanta have increased</a> dramatically over the past few years. When I was first looking for homes in the area, there were hardly any newly built ones that were affordable. The homes that were, weren't modern, and required a lot of work.I believe this South Park Cottages has made homeownership more attainable for people like me, and has given me the opportunity to create a space of my own.<div type="image" title="Kristi Campbell holding a mug." height="682" width="1024" msid="109738799" hostid="261" sizebytes="25980"></div>Right now, I think my tiny home is great for me, but I definitely see it as a stepping stone. I want to live here for another year and a half, and then purchase another home, especially because I plan to get married and have children someday.I'm going to hold onto this tiny home and pass it onto them. It's amazing knowing that I've invested in something that will benefit me and future generations.

I'm a millennial first-time buyer who moved into a micro home village. I had to downsize my stuff, but it was worth it for the community.  

<ul class="summary-list"><li>Thomas Loncq and Himika Masago moved into a micro-apartment in Paris in 2023.</li><li>The micro-apartment, originally a maid's room, is about 97 square feet and has a standing shower.</li></ul>Thomas Loncq, 35, and Himika Masago, 34, <a target="_blank" href="https://www.businessinsider.com/how-to-find-apartment-in-paris-france-american-living-abroad-2024-2">moved back to Paris</a> in 2023 after two years of living together in Japan, and they needed a place to stay."After returning to France, we needed to find a place right away, but we were unemployed, and renting a place seemed difficult," Masago told Business Insider.<div type="image" title="A French man and a Japanese woman taking a selfie at a beach." height="960" width="1280" msid="108773549" hostid="261" sizebytes="176216"></div>It made sense for the couple — who both have a background in architecture — to first move into the<a target="_blank" href="https://www.businessinsider.com/inside-172-square-foot-tokyo-micro-apartment-photos-2023-7"> micro-apartment</a> that Loncq already owned as they settled down into their new lives in the city.<h2>Living tiny</h2>Loncq had bought the <a target="_blank" href="https://www.businessinsider.com/gen-z-couple-pays-for-one-hundred-square-foot-microstudio-2023-9">micro-apartment</a> five years ago for €90,000, or about $98,050, and had been renting the place out while he was in Japan. The room measured nine square meters, or about 97 square feet."I was looking to buy something to invest in but I didn't have a big capacity to lend money from the bank. I also wanted to find something in Paris, and that's how I ended up buying such a small place," Loncq told BI.The apartment is housed in a building that was built in the 1930s, and it was originally a "chambre de bonne," or a maid's room.Nestled under the roofs of Paris' apartment buildings, these micro-dwellings were originally meant to be the private quarters of domestic helpers.There are about 113,000 chambres de bonnes in the capital, according to a study by the Parisian Urban Planning Agency, per <a target="_blank" href="https://www.leparisien.fr/paris-75/a-la-reconquete-des-chambres-de-bonnes-10-10-2016-6189201.php">Le Parisien</a>.The couple's micro-home is in the 11th arrondissement of Paris, where apartments cost an average of €9,637 per square meter, according to the latest March data from French property website <a target="_blank" href="https://www.seloger.com/prix-de-l-immo/vente/ile-de-france/paris/paris-11eme/750111.htm">Seloger.com</a>.Similar-sized rooms in the area cost anywhere between $53,000 and $132,000, per active listings on real-estate platform <a target="_blank" href="https://www.properstar.com/france/11th-arrondissement-of-paris/buy/flat/price-low-to-high?area.living.max=10&amp;st=StudioApartment">Properstar</a>."There are no tourist spots. This area is not a high-class residential area, but is called downtown Paris, and has the highest population density among the 20 arrondissements of Paris, making it an easy place to live," Masago said.<h2>Cutting clutter</h2>The 97-square-foot micro-home has just enough space for a futon, a mini study, a kitchenette, and a standing shower. The toilet is shared with other occupants on the same floor, Loncq said.Thankfully, the couple didn't have that much trouble <a target="_blank" href="https://www.businessinsider.com/personal-finance/decluttering-my-home-poverty-mentality-harms-2021-10">decluttering</a>.In preparation for Loncq's move to Japan, he had already sold most of his belongings. Likewise, Masago had gotten rid of a lot of stuff before she moved to Paris.<a target="_blank" href="https://www.businessinsider.com/boxes-storage-year-minimalism-move-interrupted-how-it-works-2024-3">Living minimally</a> comes like second nature now.Masago said they are both more selective about what they buy. "He collects CDs, and I collect vintage plates, but we no longer buy them just because they're cheap."In addition to thinking about what they want and need, they also <a target="_blank" href="https://www.businessinsider.com/psychotherapist-10-ways-to-stop-giving-people-power-over-you-2020-1">stopped caring about what others might thin</a>k."I no longer think about things from an outsider's perspective, like, 'I look nice when I own this,''' Masago said.<h2>Creating extra storage with a raised floor</h2><div type="image" title="The closet." height="3024" width="4032" msid="108773551" hostid="261" sizebytes="458490"></div>The micro-apartment didn't have that many <a target="_blank" href="https://www.businessinsider.com/space-saving-storage-hacks-tiny-cabin-photos-2023-10">storage options</a> in the beginning. Most of the cabinets were only installed after it was decided that they were going to move in together.Inspired by <a target="_blank" href="https://www.insider.com/diy-old-home-renovation-abandoned-japanese-guesthouse-before-after-photos-2023-3">Japanese interior design</a>, the couple decided to build a raised floor that covers most of their apartment. This meant that the area under their floor could be used as storage space.The only part of the floor that isn't raised is a spot by the entrance. By creating a difference in height between their entryway and the rest of their home, it also feels like there's a separation between the spaces, Masago said."This eliminates the psychological block of sitting on the floor," she said, adding, "It feels like a living room, so there is no resistance to sleeping or sitting on the floor with a futon spread out."Additionally, the floor of the couple's standing shower is much higher than the rest of the home, due to the slope of the drain pipe running underneath, she said.<div type="image" title="Composite image showing the kitchenette and a shower that's hidden behind a curtain." height="1081" width="1440" msid="108773552" hostid="261" sizebytes="111138"></div>If they didn't build a raised floor, there would have been a height difference of over one foot between the shower floor and the rest of the room, she added.<h2>Perks of living tiny</h2>There are benefits to living in a <a target="_blank" href="https://www.businessinsider.com/gen-z-couple-pays-for-one-hundred-square-foot-microstudio-2023-9">micro-apartment</a> too."I like to live here because since the space is small, sunlight comes into all parts of the room," Masago said. Keeping their apartment tidy is also a breeze, since there aren't that many things they have to clean.Living in the micro-apartment was meant to be a temporary arrangement, and the couple hopes to move out this year, Loncq said."We stayed here longer than I expected to, I think, because we feel quite comfortable," he said. "We are used to the place now, so now if we get a 20-square-meter apartment, we'll feel like it's a palace. What would we do with all that space?"

A millennial couple moved into a 97-square-foot micro-apartment in Paris. It's not their forever home, but they've made themselves comfortable.

<ul><li>The number of <keyword id="6358354" type="General" weightage="100" keywordseo="msme" source="Orion">MSME</keyword>s have gone down in 2021-22 compared to 2020-21 because a number of MSMEs have grown bigger and crossed the MSME threshold. </li><li>MSMEs across all sectors have shown strong resilience to bounce back post the pandemic-induced slowdown. </li><li>The <keyword id="4656676" type="General" weightage="80" keywordseo="udyam" source="Orion">Udyam</keyword> portal and the Emergency Credit Line Guarantee Scheme have helped MSMEs to weather the storm. </li></ul>The micro, small and medium enterprises (MSME) sector is charting a new story post pandemic, with credit growth to MSMEs consistently higher – both on a year-on-year basis and also in comparison with larger industries, according to SBI Research. Incentives provided by the Emergency Credit Line Guarantee Scheme (ECLGS), coupled with lower gross non-performing asset (GNPA) ratios have helped in boosting credit to MSMEs, the SBI Research report said. Interestingly, the number of MSMEs have gone down in 2021-22 compared to 2020-21 because a number of MSME units have grown bigger and crossed the ₹250 crore turnover threshold that defines an MSME unit under the new definition, enforced in 2020. A company bigger than ₹250 crore is considered a mid-sized corporate firm. MSMEs have shown strong resilience to bounce back from the pandemic- induced slowdown seen in 2020. In some sectors that were not affected by the pandemic – like hospitality, construction, NBFCs, power, metals and so on, the credit outstanding as of March 2022 was almost 3x that seen in March 2018. There were sectors that were affected but have recovered from the pandemic – like edible oil, printing, consumer durables, pharmaceuticals, jute, aviation, etc, – with credit expansion for some of these in March 2021 lower than the March 2018 levels, but these have staged a smart recovery in March 2022, the report said. Some industries like mining, petrochemicals, cement, FMCG and others were deeply impacted by the pandemic but have almost recovered. A couple of initiatives from the Government of India may have helped MSMEs weather the storm and chart a strong growth story, according to SBI Research. Udyam portal: Turning informal micro enterprises formal In July 2020, the Government of India launched <keyword id="15931646" type="General" weightage="50" keywordseo="udyam-assist-platform" source="Orion">Udyam Assist Platform</keyword> (UAP) to bring all the Informal Micro Enterprises (IMEs) – which constitute around 99% of the MSMEs in the country – into the formal ambit without complex and complicated paperwork. The UAP will enable IMEs who aren’t registered under GST to get a registration certificate based on information with Banks/NBFCs. The Udyam registration may also help MSMEs in availing the benefits of multiple schemes of the <keyword id="5713874" type="General" weightage="50" keywordseo="ministry-of-msmes" source="Orion">ministry of MSMEs</keyword> such as Credit Guarantee Scheme, Public Procurement Policy, additional edge in government tenders and protection against delayed payments by corporates, etc. The IMEs will also become eligible for priority-sector lending by banks, be able to get collateral-free loans from banks and also be able to get licences, approvals and registrations easily. ECLGS: A saviour during pandemic The ECLG scheme acted as an enabler and helped MSMEs navigate the pandemic better. While at least 14.6 lakh MSMEs accounts were saved due to the ECLG scheme in absolute terms, MSME loan accounts worth ₹2.2 lakh crore improved since the inception of the ECLG scheme for the entire banking industry, as per SBI Research. This means that around 12% of the outstanding MSME credit has been saved from slipping into non-performing assets (NPAs) because of the ECLG scheme. Of the 14.6 lakh MSMEs accounts that were saved due to the ECLG scheme, almost 93.8% were in the <keyword id="16232960" type="General" weightage="50" keywordseo="micro-and-small" source="Orion">Micro and Small</keyword> category. If such units slipped into NPA, 1.65 crore workers would have become unemployed.

MSME sector is on a strong growth trajectory post the pandemic: SBI Research

<ul><li><keyword id="6358354" type="General" weightage="20" keywordseo="MSME" source="Orion">MSME</keyword> sector is estimated to grow at 15%-17% this year.</li><li>Almost every type and size of industry took a hit during the pandemic; MSMEs, however, were affected the most.</li><li>A recent report by RBI pegged the credit gap in the segment to be a staggering INR 20-25 trillion.</li></ul>Today Micro, Small, and Medium Enterprises (MSME) sector contribute over 27% ( more than INR 39 trillion ) of <keyword id="3658" type="General" weightage="20" keywordseo="india" source="Orion">India</keyword>'s <keyword id="35050" type="General" weightage="20" keywordseo="GDP" source="Orion">GDP</keyword> making them vital to our nation's economy. This is further estimated to grow at 15%-17% this year. With more than 60 million MSMEs in the country, accounting for significant formal and informal employment, they have been an essential source for innovation and job creation. Almost every type and size of industry took a hit during the pandemic; MSMEs, however, were affected the most because they lacked the necessary and sufficient resources to remain steady during the most challenging times. The competition with the larger firms has also stiffened due to the time it is taking to recover. Touted as the economic growth drivers, MSMEs do have access to formal credit, but there remains a gap in how effective it is. <div type="image" title="A recent report by RBI pegged the credit gap in the segment to be a staggering INR 20-25 trillion." msid="93451540" hostid="261" caption="&amp;lt;p&amp;gt;A recent report by RBI pegged the credit gap in the segment to be a staggering INR 20-25 trillion.&amp;lt;/p&amp;gt;"></div> With credit demand now exceeding the pre-pandemic levels, the need for a robust ecosystem to fill the gap is of prime importance. Additionally, with the government impetus and focus on the segment, there is no doubt that this is a problem worth solving. Alongside the government support, private sector financing options for MSMEs can come from <keyword id="1042660" type="General" weightage="20" keywordseo="Equity-financing" source="Orion">Equity financing</keyword>, <keyword id="105120" type="General" weightage="20" keywordseo="Debt-financing" source="Orion">Debt financing</keyword> or venture capital debt. Given the holding structures of most MSMEs, the preference remains for debt financing and here is where the <keyword id="34503" type="General" weightage="20" keywordseo="Financial-Institutions" source="Orion">Financial Institutions</keyword> ought to play the most crucial role. That said, this segment's distinct characteristics have hindered lending Institutions from fully capitalizing on the opportunity. Most businesses are seasonal and have uneven cashflows, making income assessment a challenge which is a key parameter for credit appraisal. A fast-changing competitive landscape can outpace the segment, adding to the risk for the lenders. <div type="image" title="A systemic relook at the segment for understanding the nuances and developing products and offerings that best cater to the borrower&amp;#39;s needs and suit the lender&amp;#39;s risk management framework is the need of the hour." msid="93451567" hostid="261" caption="&amp;lt;p&amp;gt;A systemic relook at the segment for understanding the nuances and developing products and offerings that best cater to the borrower&amp;#39;s needs and suit the lender&amp;#39;s risk management framework is the need of the hour.&amp;lt;/p&amp;gt;"></div> Traditionally, the loans have always been repaid in equal monthly instalments. Offerings that allow flexibility for bespoke, start-low, quarterly repayments etc. will complement the borrower's seasonality and uneven cash flow problem and still allow room for business growth. Quicker data-driven decisions, nuanced income assessments, and digital delivery of lending products will address the credit gap in a much more personalized manner. Given their significance to the GDP, MSMEs can make use of a more efficient credit ecosystem. With green shoots of economy visible, the time is opportune for lending institutions to rejuvenate the sluggish monetary ecosystem of MSMEs.

Financial Institutions Turning Towards MSME Lending

<ul><li><keyword id="6553953" type="UNKNOWN" weightage="20" keywordseo="creditbee">CreditBee</keyword> is reportedly <keyword id="874458" type="LOCATION" weightage="100" keywordseo="Xiaomi">Xiaomi</keyword>’s new <keyword id="3088449" type="PERSON" weightage="20" keywordseo="micro-lending">micro lending</keyword> platform in India. </li><li>Experts expect India’s <keyword id="2461546" type="PERSON" weightage="20" keywordseo="FinTech">fintech</keyword> industry to double in the next two years.</li><li>The service will issue <keyword id="1628688" type="PERSON" weightage="20" keywordseo="micro-loans">micro loans</keyword> at a 3% rate of interest for a period of 90 days. </li></ul>Chinese smartphone maker Xiaomi is launching their new lending platform in India. The micro-lending product is named CreditBee since the service has been launched in partnership with <keyword id="3538270" type="PERSON" weightage="20" keywordseo="KrazyBee">KrazyBee</keyword>. The company has yet to make an official announcement, but a source speaking to <a href="https://tech.economictimes.indiatimes.com/news/internet/xiaomi-launches-its-first-lending-product-in-india/64282329">ETtech</a> claimed that the platform is already live and the company will officially unveil it in the coming weeks. Microloans are essentially loans of small value issued at a low rate of interest. Over the past couple of years, it’s become quite an attractive <a href="https://www.moneycontrol.com/news/business/personal-finance/7-emerging-lending-options-you-should-explore-to-raise-funds-2566149.html">alternative</a> for under-represented groups or start-ups, who don’t necessarily require a huge loan. On CreditBee, consumers will be able to avail loans <a href="https://inc42.com/buzz/xiaomi-launches-lending-product-creditbee-with-krazybee/">starting</a> from ₹1,000 to ₹100,000. The term of the loans is 90 days, at an interest rate of 3 percent. Their target audience is salaried professionals who need short-term, small amount loans. KrazyBee, Xiaomi’s partner for this venture, is amongst the companies Xiaomi invested in. It was only last year that they <a href="https://tech.economictimes.indiatimes.com/news/startups/krazybee-raises-8-million-from-xiaomi-tech-and-others/61111187">led</a> an $8 million round for the company, which is based out of Bengaluru. And now, Xiaomi may even be <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/xiaomi-is-in-advanced-talks-to-pick-up-stake-in-zestmoney/articleshow/63675367.cms">looking</a> into making a second investment in the fintech industry with <keyword id="6414960" type="UNKNOWN" weightage="20" keywordseo="ZestMoney">ZestMoney</keyword>. ZestMoney is the company that fuels EMI-loans on Mi.com at the moment. Reports <a href="https://tech.economictimes.indiatimes.com/news/mobile/xiaomi-is-in-advanced-talks-to-pick-up-stake-in-zestmoney/63675487">indicate</a> that the former is looking to raise around $20 million through Xiaomi and its existing investors, like PayU. It’s not surprising that Xiaomi is looking at the fintech industry. The company already has a few lending platforms back home in China. Also, it had <a href="https://www.techradar.com/news/xiaomi-plans-to-launch-6-new-smartphones-expand-its-non-smartphone-portfolio-in-2018">indicated</a> earlier that it would like to expand its business beyond the smartphone arena and build a non-smartphone portfolio. With the country’s demographic dividend hitting its peak, more and more products are being targeted towards salaried individuals. Experts <a href="https://www.financialexpress.com/economy/economic-boom-in-india-coming-soon-massive-number-of-consumers-eligible-for-credit-heres-what-it-means/1175548/">speculate</a> that there are nearly 150 million consumers who aren’t 'credit active' right now but are eligible to turn into retail credit borrowers. Their analysis suggests that tapping into that potential could result in big growth opportunities for companies in the lending industry, which in turn will provide a boost to the economy. That being said, India has <a href="https://www.foxbusiness.com/markets/the-10-countries-where-people-save-the-most-money">historically</a> been a savings oriented nation, though that trend has been slowly been <a href="http://www.ey.com/Publication/vwLUAssets/ey-the-battle-for-the-indian-consumer/$File/ey-the-battle-for-the-indian-consumer.pdf">reversing</a> since the dawn of liberalisation and privatisation in 1992. With the fintech software market set to <a href="http://www.nasscom.in/knowledge-center/publications/fintech-india-global-growth-story">double</a> to $2.4 billion by 2020 from the current $1.2 billion, the transformation will only gain momentum. Currently, India is the biggest market for Xiaomi, second only to China. The company’s Indian operations even <a href="https://economictimes.indiatimes.com/tech/hardware/xiaomi-turns-profitable-in-third-year-in-india/articleshow/61954734.cms">started</a> turning a profit in FY 2017, which marked Xiaomi’s third year in the country with sales of around ₹8,379 crore.

After conquering the smartphone space, Xiaomi now wants to enter India’s fintech industry

<ul><li>The <keyword id="6354335" type="ORGANIZATION" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> has set up a working group to <keyword id="10590094" type="UNKNOWN" weightage="20" keywordseo="monitor-digital-lending">monitor digital lending</keyword> in the country.</li><li>The group will study the scope of <keyword id="59794" type="PERSON" weightage="20" keywordseo="Digital-lending">digital lending</keyword> in India, identify risks in the sector “posed by unregulated digital lending”.</li><li>The group will also set up a Fair Practices Code and recommend measures for data security in the sector. </li></ul>India’s central bank has set up a working group to monitor digital lending in the country. The group consisting of four top members of the Reserve Bank of India and two external members from a fintech firm and a cybersecurity firm will submit their observations of the digital lending sector within three months. The <keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword> said that the recent spurt in online apps pose serious concerns. “A Working Group (WG) is being set up to study all aspects of <keyword id="10590095" type="UNKNOWN" weightage="20" keywordseo="digital-lending-activities">digital lending activities</keyword> in the regulated financial sector as well as by unregulated players so that an appropriate regulatory approach can be put in place,” said the official statement from RBI. The group will study the scope of digital lending in India, identify risks in the sector “posed by unregulated digital lending” and also suggest regulatory measures if needed. Additionally, the group will also set up a Fair Practices Code and “recommend measures for robust data governance, data privacy and data security standards for deployment of digital lending services.” Earlier in December 2020, the RBI had sent out a note of caution about unauthorized digital lending platforms and apps, which promise quick loans. With the coronavirus pandemic, people have been turning more and more to digital apps which offer hassle-free instant loans. However, reports have surfaced about fraudulent cases emerging from such online practices. In <a href="https://www.indiatoday.in/india-today-insight/story/how-instant-loan-apps-are-extorting-borrowers-in-telangana-1752148-2020-12-22">Telangana</a>, 11 people have been arrested so far in connection to such dubious loan companies. The <a href="https://www.newindianexpress.com/cities/hyderabad/2020/dec/22/fraud-alert-cyberabad-police-writes-to-googleplay-store-over-259-micro-loan-apps-2239361.html">Cyberabad police</a> has also reportedly written to Google Play Store regarding 259 such micro loan apps. According to a <a href="https://www.thenewsminute.com/article/harassment-digital-lending-apps-driving-defaulters-suicide-no-action-rbi-139968">Newsminute</a> report, at least five people have committed suicide in the state due to harrassment from such instant loan apps.

India’s central bank to monitor digital lending, says recent spurt of lending apps has raised serious concerns

<ul><li><keyword id="6355629" type="DEFINITION" weightage="20" keywordseo="google">Google</keyword> has reviewed hundreds of <keyword id="6095737" type="UNKNOWN" weightage="20" keywordseo="loan-apps">loan apps</keyword> in India and has also removed many of them, which have violated user safety guidelines. </li><li>Google’s crackdown on lending apps in India comes after the Reserve Bank of India announced that it was forming a working group to regulate <keyword id="59794" type="PERSON" weightage="20" keywordseo="Digital-lending">digital lending</keyword>. </li><li>Among many other regulatory steps, the group will also set up a Fair Practices Code and “recommend measures for robust data governance, data privacy and data security standards” in the digital lending sector.</li></ul>Tech giant Google today said that it has reviewed hundreds of loan apps in India and has also removed many of them, which have violated user safety guidelines. “We have asked the developers of the remaining identified apps to demonstrate that they comply with applicable local laws and regulations. Apps that fail to do so will be removed without further notice. In addition, we will continue to assist the law enforcement agencies in their investigation of this issue,” said Google <a href="https://india.googleblog.com/2021/01/protecting-against-harmful-financial.html">in its blog</a>. Here’s the information that financial apps have to share with Google <ul><li>minimum and maximum periods of repayment</li><li>the maximum Annual Percentage Rate, </li><li>and a representative example of the total loan cost. </li></ul>The tech company also said that it only allows “personal loan apps with full repayment required in greater than or equal to 60 days from the date the loan is issued.” Google’s crackdown on lending apps in India comes after the Reserve Bank of India announced that it was forming <a href="https://www.businessinsider.in/finance/news/rbi-sets-up-a-working-group-for-digital-lending-says-recent-spurt-of-lending-apps-has-raised-serious-concerns/articleshow/80250943.cms">a working group to regulate digital lending. </a> The group will study the scope of digital lending in India, identify risks in the sector “posed by unregulated digital lending” and also suggest regulatory measures if needed. Additionally, the group will also set up a Fair Practices Code and “recommend measures for robust data governance, data privacy and data security standards for deployment of digital lending services.” Google, in its statement, also said that it was placing focus on user’s privacy. “Developers must also only use data for purposes that the user has consented to, and if they later want to use the data for other purposes, they must obtain user permission for the additional uses,” said the tech giant. The group consisting of four top members of the Reserve Bank of India and two external members from a fintech firm and a cybersecurity firm will submit their observations of the digital lending sector within three months. The RBI said that the recent spurt in online lending apps pose serious concerns. With the coronavirus pandemic, people have been turning more and more to digital apps which offer hassle-free instant loans. However, reports have surfaced about fraudulent cases emerging from such online practices. In <a href="https://www.indiatoday.in/india-today-insight/story/how-instant-loan-apps-are-extorting-borrowers-in-telangana-1752148-2020-12-22">Telangana</a>, 11 people have been arrested so far in connection to such dubious loan companies. The <a href="https://www.newindianexpress.com/cities/hyderabad/2020/dec/22/fraud-alert-cyberabad-police-writes-to-googleplay-store-over-259-micro-loan-apps-2239361.html">Cyberabad police</a> has also reportedly written to <keyword id="6369511" type="UNKNOWN" weightage="20" keywordseo="google-play-store">Google Play Store</keyword> regarding 259 such micro loan apps. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/rbi-sets-up-a-working-group-for-digital-lending-says-recent-spurt-of-lending-apps-has-raised-serious-concerns/articleshow/80250943.cms">India’s central bank to monitor digital lending, says recent spurt of lending apps has raised serious concerns</a>

Google says it has removed several loan apps in India after RBI takes steps to curb fraud in digital lending

Big "ICYMI" energy in the newsletter today. Look, we get it. There was some other big news this week. But Insider's <keyword id="6354851" type="UNKNOWN" weightage="100" keywordseo="retail">retail</keyword> team always has you covered when it comes to the biggest retail business stories.This week's edition covers retailers, like <keyword id="151277" type="CITY" weightage="60" keywordseo="CVs">CVS</keyword>, <keyword id="249296" type="COMPANY" weightage="60" keywordseo="Kroger">Kroger</keyword>, and Walgreens, rolling out vaccines. And we take a look at a startup that's turning vacant retail stores into micro-warehouses for <keyword id="35621" type="PERSON" weightage="60" keywordseo="e-commerce">e-commerce</keyword> orders. If you haven't already subscribed to Insider Retail, <a href="https://newsletter.businessinsider.com/join/free">click here</a> to get me, Gloria Dawson, senior editor of retail, and our associate editor, Danni Santana, in your inbox every week.<h2><a href="https://www.businessinsider.com/stores-prepare-for-100-million-covid-vaccines-including-cvs-kroger-2021-1">How Walgreens, CVS, Kroger, and other retailers plan to leverage tech, convenience, and public trust to get the chaotic mass vaccine rollout back on track</a></h2><div type="image" title="Coronavirus vaccine" height="1333" width="1777" msid="80376973" hostid="261"></div>It's no secret that the <keyword id="24209" type="PERSON" weightage="60" keywordseo="vaccine">vaccine</keyword> rollout has been less-than-smooth. Could retailers help get things back on track? Well, they certainly hope so. It's not the craziest idea. As Alvin Tran, a social epidemiologist at the University of New Haven told our reporters, these brands lend name recognition, trust, and their own technology to the process. Drug stores also aren't the only retailers who want a piece of the vaccine story:<ul><li>Amazon's <a href="https://www.businessinsider.com/amazon-dave-clark-offers-biden-help-with-covid-vaccination-effort-2021-1">Dave Clark has some advice</a></li><li>Washington state recruits <a href="https://www.businessinsider.com/washington-covid-vaccine-starbucks-rollout-microsoft-2021-1">Starbucks to help with its COVID-19 vaccine</a> rollout</li></ul><h2><a href="https://www.businessinsider.com/fabric-same-day-delivery-cheaper-small-fulfillment-centers-2021-1">Logistics startup Fabric has raised $136 million to build shipping warehouses in unused real estate like retail stores and gyms</a></h2><div type="image" title="Fabric MFC" height="1875" width="2500" msid="80376974" hostid="261"></div>Here's a trend for you all: Retail stores close as consumers flock to e-commerce during the pandemic. Logistics startups then use vacant retail space as micro-warehouses to fulfill e-commerce orders. Our Correspondent Madeline Stone wrote about Fabric, a big player in this particular retail life cycle story.Fascinated by the micro-warehousing trend? You've come to the right newsletter.<ul><li>Meet the 4 startups helping retailers compete with Amazon by <a href="https://www.businessinsider.com/micro-warehouse-startups-retailers-amazon-level-speed-2020-12">tapping into micro-warehouses</a> across the US</li><li>How a debilitating injury left this founder reliant on on-demand delivery and inspired to create a startup that helps <a href="https://www.businessinsider.com/micro-warehousing-startup-ohi-offers-dtc-amazon-like-shipping-speeds-2020-12">DTC companies expedite shipping speeds by using micro-warehouses</a>Elsewhere in retail:</li><li>New year, new job? <a href="https://www.businessinsider.com/how-much-does-postmates-pay-engineers-data-scientists-2021-1">Here's how much Postmates pays</a> software engineers, robotics engineers, and data scientists at the last-mile delivery company now owned by Uber</li><li>The resale market is so hot right now. <a href="https://www.businessinsider.com/used-peloton-bikes-sold-online-delaying-company-resale-market-plan-2021-1">Used Peloton bikes are selling online through Facebook and Craigslist</a> within hours for the same price as a new machine.</li><li><a href="https://www.businessinsider.com/bernie-sanders-wore-burton-meme-jacket-to-inauguration-2021-1">Bernie Sanders represented Vermont with his familiar Burton jacket</a> on Inauguration Day. Yes, there is always a retail angle.</li><li>As Oatly looks to IPO, experts say these <a href="https://www.businessinsider.com/foods-brands-expected-ipo-2021-1">8 brands in the $813 billion packaged food industry could follow suit</a>, from Impossible Foods to Chobani</li><li><a href="https://www.businessinsider.com/retailers-drop-my-pillow-election-fraud-claims-mike-lindell-2021-1-">Bed Bath &amp; Beyond and Kohl's will drop My Pillow</a> products from stores after its CEO spread election conspiracy theories</li><li>A <a href="https://www.businessinsider.com/mcdonalds-franchisee-attends-dc-protests-as-chain-condemns-trump-2021-1">McDonald's franchisee said he had 'an EPIC time' in Washington, D.C. amid the Capitol riot.</a> Now his posts are shining a light on the political struggle engulfing corporate America.</li></ul>

Insider Retail: Logistics startups look to micro-warehouses and the vaccine rollout hits retail stores

<ul><li><keyword id="2181438" type="PERSON" weightage="20" keywordseo="Aye-Finance">Aye Finance</keyword>, the lending startup for micro, small and medium enterprises, has roped in former <keyword id="1391131" type="COMPANY" weightage="20" keywordseo="Hero-FinCorp">Hero Fincorp</keyword> Chief Business Officer <keyword id="252940" type="PERSON" weightage="20" keywordseo="Samir-Mehta">Samir Mehta</keyword> as its deputy CEO. </li><li>Mehta will focus on scaling up Aye’s business and will implement strategies to enhance the MSME lenders’ performance and capability.</li><li>Recently, in June, Aye Finance had raised ₹210 crore from CapitalG – Google’s parent company Alphabet’s growth fund. </li></ul>Aye Finance, the lending startup for micro, small and medium enterprises, has roped in former Hero Fincorp Chief Business Officer Samir Mehta as its deputy CEO. Mehta comes with 22-year experience in BFSI, and at Aye Finance, he will focus on scaling up Aye’s business and will implement strategies to enhance the MSME lenders’ performance and capability. “Aye provides much-needed financial services to India’s micro-scale informal businesses and the entrepreneurs who run them – a critical, but often overlooked and underserved population,” Mehta said about joining the startup. “He adds further strength to our team, as we successfully negotiate the times of this economic disruption. Samir’s expertise in P&amp;L management of large businesses and in scaling up lending to the SME segment will be very valuable as we emerge from this period,” said Sanjay Sharma, Managing Director of Aye Finance. Recently, in June, Aye Finance had raised ₹210 crore from CapitalG – Google’s parent company Alphabet’s growth fund. The Series E round also saw participation from GT Lightstone, Falcon Edge Capital, A91 Partners, and MAJ Invest. Aye Finance, founded in 2014, has disbursed loans worth ₹3000 crores to over 200,000 businesses in six years. In November last year, the startup had raised ₹125 crores from the Dutch entrepreneurial development bank – FMO. The company also recently ranked 14 in India’s best places to work by Great Place to Work Institute. The six-year-old Aye Finance is getting aggressive on its focus sector – the <keyword id="6393272" type="UNKNOWN" weightage="20" keywordseo="MSMEs">MSMEs</keyword>, given the government push for the growth of India’s small businesses. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/masayoshi-son-best-bet-for-future-profit-is-paypay-in-japan-built-on-vijay-shekhar-sharma-paytm-model-in-india/articleshow/77518892.cms">Masayoshi Son’s best bet for future profit is PayPay in Japan⁠ — built on Vijay Shekhar Sharma’s Paytm model in India</a>

You Searched For "micro lending" and got 11 results

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Insider Retail: Logistics startups look to micro-warehouses and the vaccine rollout hits retail stores

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Google-backed Aye Finance brings on board former Hero Fincorp Chief Business Officer

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