NBFCs raise interest rate between 50 and 200 bps amidst liquidity squeeze

For the microfinance industry too, the increase in lending rates has been roughly between 50-100 bps

Non-banking financial companies (NBFCs) have raised interest rates ranging between 50 basis points (bps) and 200 bps across sectors, as their cost of funds rises amidst liquidity squeeze. This includes NBFCs in housing finance, gold loans, microfinance, small and medium-sized enterprises, and farm finance, among other segments.

For one of the worst-hit segments by the Infrastructure Leasing & Financial Services crisis in the NBFC space - housing finance companies - the liquidity situation has not eased yet.  

“The liquidity situation has not eased in the housing finance segment, and we have raised interest rates between 100-150 bps,” said C V