Loans sanctioned by NBFCs drop 31% in Q4 due to loss of investor confidence

Long-term loans, commercial vehicle loans, and housing loans saw sharp hit

The impact of the liquidity crunch amid loss of investor confidence got aggravated for non-banking financial companies (NBFCs). After a 17 per cent year-on-year (YoY) fall in the December 2018 quarter, the amount of loans sanctioned by NBFCs (excluding housing finance companies) dropped by 31 per cent YoY in the March 2019 quarter (Q4) to Rs 1.96 trillion, shows the data by Finance Industry Development Council (FIDC). For 2018-19 (FY19), the amount sanctioned by NBFCs fell by 6 per cent to Rs 9.07 trillion.

With liquidity crunch hitting operations, many finance companies have put the brakes on sanctions in the