FIDC welcomes Budget announcement on refinancing of NBFCs by MUDRA

K R Srivats Updated on February 02, 2018

The Finance Industry Development Council (FIDC), a representative body for asset-financing NBFCs, has hailed budget announcement to review the eligibility criteria and norms for refinancing of NBFCs by MUDRA.

This will give big impetus to the growth in MUDRA loans as they are a perfect fit for the business model of NBFCs, Raman Aggarwal, Chairman, FIDC told BusinessLine.

This will cater to the long standing demand of NBFCs, especially small and medium NBFCs to have a refinancing window, he said.

"We had raised this issue in the pre-budget meeting with Finance Minister in December", Aggarwal said.Finance Minister Arun Jaitley had in his budget speech on Thursday said that refinancing policy and eligibility criteria set by MUDRA will be reviewed for better refinancing of NBFCs.

He highlighted that non banking finance companies (NBFCs) had stepped up financing of MSMEs after demonetisation and that NBFCs can be very powerful vehicle for delivering loans under MUDRA.

srivats.kr@thehindu.co.in

Published on February 02, 2018
TOPICS
finance (general)
NBFC

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