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NBFCs can assess a customer differently and provide a credit solution that differentiates them from banking (companies)

Non-banking financial companies (NBFCs) have emerged as a preferred option for numerous underserved sectors, particularly small businesses and households, because these players are in areas where traditional banks could not go. At a panel discussion of the Business Standard Insight Summit 2024 titled ‘Reaching the last mile’, heads of emerging NBFCs –Shachindra Nath, vice-chairman and managing director (MD) of U GRO Capital; and Venkatesh N, founder and MD of IIFL Samasta, discussed various issues. Edited excerpts: 

How challenging is it to serve the last mile? 

  Shachindra: Generally, it is said that NBFCs have better last-mile reach. Actually, it