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NBFCs tap non-conventional sources, tweak business models for funds

This comes after monetary issues, stemming from asset-liability mismatch, were taken up nearly two months ago

Household loans

Top housing finance companies (HFCs) and non-banking finance companies (NBFCs) have taken new routes for funding and tweaked business models in a bid to overcome the liquidity crisis.   This comes after monetary issues, stemming from asset-liability mismatch, were taken up nearly two months ago. NBFCs and HFCs, experts said, over borrowed from the short-term debt market, mainly through commercial paper (CP) issuances, and lent for longer terms like home loans of 8 to 15 years maturity, which led to the mismatch. Some of these new routes include tapping bank ...