NBFC industry body writes to FM to include individuals under ECLGS scheme

Says more than 75% of customers take loans in their individual names as they do not have any business establishment or partnerships and are compelled to conduct their businesses in individual names

The Finance Industry Development Council (FIDC), an industry body representing NBFCs, has sought inclusion of individuals who take loans for purchasing vehicles — to be put to commercial use — as eligible borrowers under the emergency credit line guarantee scheme (ECLGS).

Under this scheme, a 100 per cent guaranteed cover is provided to all lenders, in order to enable additional funding of up to Rs 3 trillion to small businesses.

The FIDC has written to Finance Minister Nirmala Sitharaman in this regard, stating that above 75 per cent of customers take loans in their individual names given that they do not have