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Shadow banks want govt to create a special fund for 3-5 year loans

The tenure of refinancing should be increased to at least 36 months for a healthy asset-liability profile, said the lobby group for NBFCs

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All NBFCs, irrespective of their size and credit rating (even unrated), should be eligible to get funds, the FIDC said | Imaging: Ajay Mohanty

Abhijit Lele Mumbai
Non-banking financial companies (NBFCs) want the government to set up a dedicated fund through which they can get loans with tenures of three to five years, as it will help the cash-strapped sector maintain a healthy asset-liability match.
 
In a representation to Union Finance Minister Nirmala Sitharaman, the Finance Industry Development Council (FIDC) on Friday said the average tenure of loans extended to the majority of customers (individuals and MSMEs) is 24-48 months. However, funding under the partial credit guarantee scheme, special liquidity scheme, and the refinancing being done by Sidbi are for a short tenure of six months to

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First Published: Sep 18 2020 | 11:50 PM IST

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