Borrowing cost up 1.2-1.5% for small finance cos despite liquidity: Crisil

The second Covid-19 wave has likely intensified the pressure points

Topics
Market borrowings | small finance bank | Crisil

Abhijit Lele  |  Mumbai 

The perception of risk is hard to shake off when it comes to funding small and mini finance companies, which serve those at the bottom of the pyramid. Despite lower interest rates in the market as a whole, their average cost of borrowings rose by 1.2-1.5 per cent between fiscal 2018 and 2021, according to a Crisil analysis.

The second Covid-19 wave has likely intensified the pressure points for small and mini non-banks. The Reserve Bank of India injected Rs 5.75 trillion into the system to fight the pandemic and keep interest rates soft. But this failed to mitigate the ...

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First Published: Fri, July 23 2021. 17:38 IST
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