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NBFCs seek relaxation in eligibility to recover loans under SARFAESI Act

The request has been made considering the recovery of small-ticket loans given to MSMEs, and proposes to bring parity in recovery of soured loans by banks and non-bank lenders

Though the RBI has offered restructuring and the sentiment is better than what it was a few months ago
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The NBFCs have also asked the government to expand the Partial Credit Guarantee Scheme 2.0

Nikunj Ohri New Delhi
Non-banking financial companies (NBFCs) have sought relaxation in eligibility to recover loans under the SARFAESI Act from the government.
 
In the pre-Budget meeting with Finance Minister Nirmala Sitharaman, the Finance Industry Development Council, a representative body for NBFCs, has suggested lowering the minimum ticket size of Rs 50 lakh for loans eligible to be recovered by NBFCs under SARFAESI Act.
 
The request has been made considering the recovery of small-ticket loans given to MSMEs, and proposes to bring parity in recovery of soured loans by banks and non-bank lenders, said Raman Aggarwal, co-chairman of the industry body.
 
The finance minister,

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First Published: Dec 16 2020 | 1:21 AM IST

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