They are victims of erroneous perception of being high risk clients (elevated defaults), limiting access to banks and debt markets.
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Small- and medium-size finance companies serving the bottom of pyramid are hamstrung by limited supply of bank funds and need Rs 2.32 trillion in debt in the next five years.
Impact NBFCs will need Rs 58,000 crore equity, according CIBIL assessment.
These companies, focusing on SMEs, vehicle and affordable housing, etc., are termed as “Impact NBFCs”. They are victims of erroneous perception of being high risk clients (elevated defaults), limiting access to banks and debt markets.
Credit Information Bureau TransUnion CIBIL said a five-year analysis of these entities revealed that Less than 10 percent of Impact NBFCs have been able to achieve credible scale – portfolios above Rs 2,000 crore — in the past five years.
