Budget 2019: Nirmala Sitharaman’s sops for NBFCs to boost their access to capital, lending capacity to MSMEs.

July 15, 2019

The budget underlined the role that NBFCs play in the capital formation of MSMEs segment, and that NBFCs should continue to get funding from the banks. Since the liquidity crisis, the banks have become more conservative lending to NBFCs or providing interest rate reductions,” said Hardika Shah, Founder & CEO, Kinara Capital. Enhancing credit guarantee for portfolio purchases will improve the flow of funds to healthy NBFCs. This will help NBFCs provide unsecured lending to MSMEs that struggle for capital, said Shah.