Crisis no hindrance for yield-hungry global financiers to Indian NBFCs

The top-rated non-banking financing companies are able to get loans in the domestic market as well, but they are finding that borrowing costs are often lower overseas

While most of India’s shadow lenders remain caught in a prolonged cash crunch at home, some of the highest-quality financiers are finding that yield-hungry investors in the global loan market are eager to extend credit.

That’s helped reduce average margins on overseas loan deals for non-state Indian shadow lenders to a record low, according to data compiled by Bloomberg. Highly-rated firms including Tata Capital Housing Finance Ltd., L&T Finance Ltd. and Fullerton India Credit Co. have sought loans in the global market in recent months.

The top-rated non-banking financing companies are able to get loans in the domestic market as well, but