 "money, cash, rupees")
The cash-strapped non-banking financial company (NBFC) sector is bracing for another challenge.
In the absence of clarity on whether the three-month moratorium applies to the loans NBFCs have taken, the shadow lenders have to repay banks at a time when their cash flows have taken a hard knock due to the coronavirus pandemic.
Banks are offering fresh credit at rates above 8 per cent depending on the tenor, while borrowing funds from the RBI at 4.4 per cent. NBFCs and HFCs have to give a three-month moratorium to their consumers on term loans, as suggested by the RBI last month.
