Impact of loan moratorium on private NBFCs, HFCs can be substantial: RBI

Impact of the loan moratorium on private non-banking financial companies (NBFCs) and housing finance companies (HFCs) can be substantial, with close to 50 per cent of the aggregate assets under moratorium as of April-end, the RBI's Financial Stability Report said on Friday.

In March, the RBI had announced a moratorium on repayment of term loans till May 31. It was later extended for another three months.

"The impact of the moratorium on private NBFCs/HFCs can be substantial, with proportion of assets under the moratorium for NBFCs averaged between 39-65 per cent based on underlying assets with approximately 50 per cent