The shadow-banking sector has welcomed the finance minister’s latest announcement, which would make access to funds easier for the cash-starved NBFCs.
These announcement comes just before the start of the festive season and should help NBFCs to resume their efforts toward new business expansion as the NHB(National Housing Bank) will be releasing Rs.10,000 crore. The NHB limit of extending credit lines to NBFCs has been increased from 20K to 30K crores. Also the partial credit guarantee scheme for
The finance minister announced additional liquidity support. The NHB, or National Housing Bank, can now extend up to Rs.30,000 crore credit lines to NBFCs instead of Rs.20,000 crore earlier. However, the minister added that the partial credit guarantee purchase of pooled assets of NBFC/HFCs, up to Rs.1 lakh crore, will be monitored at the highest level in each bank. The state-owned banks will get 70k crore of capital for expanding credit to market.
The finance ministry has now allowed the NBFCs to use Aadhar authenticated bank KYC which means that if a customer is KYC compliant with any bank then he is eligible to take a loan from NBFCs without again going for KYC. This will also help in increasing the last-mile credits, as banks are now likely to revive their lending to NBFCs.
The finance minister also said that the measure for real estate and housing/construction financing would be announced next week.
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