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Govt lowers loan limit for debt recovery for NBFCs with Rs 100cr asset size

FM Sitharaman brought down the value of loans that can be introduced for debt recovery under the SARFAESI Act to Rs 20 lakh from Rs 50 lakh for NBFCs having a minimum asset size of Rs 100 crore.

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Budget 2021 | Nirmala Sitharaman | NBFCs

Press Trust of India  |  New Delhi 

Sitharaman

Finance Minister on Monday brought down the value of loans that can be introduced for debt recovery under the SARFAESI Act to Rs 20 lakh from Rs 50 lakh for having a minimum asset size of Rs 100 crore.

Sitharaman, while presenting the budget for 2021-22, said it will bring in credit discipline and also protect the interest of small borrowers.

"To improve credit discipline while continuing to protect the interest of small borrowers, for with minimum asset size of Rs 100 crores, the minimum loan size eligible for debt recovery under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 is proposed to be reduced from the existing level of Rs 50 lakh to Rs 20 lakh," the finance minister said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Mon, February 01 2021. 15:04 IST
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