I have been noticing that financial services lenders and banks take policy calls on not lending to a particular sector(s) at various points in time during economic and industry cycles. Some years back it was the steel industry and now the services and the hospitality sector. Does this stem from…
In all the years that I have been Consulting and Training in the Retail Lending space especially in the MSME sector I have always felt the need for NBFCs /Banks to look at consultative approach rather than product centric approach to MSME lending. Covid has now made it imperative for…
NBFCs would do well to avoid term lending in the coming 9/12 months and stick to lending thru the Supply chain financing route to push liquidity to existing customers against their purchases of raw materials / key services and also focus on the receivables financing for them . This will…
Total lending to SMEs estimated at Rs 18 trillion of which NPAs account for 15% approx. Regular accounts around Rs 15.3 trillion. 20% funding works out to around Rs 3 trillion. The Broad size of the lending package announced by the FM. Loans to be provided to standard accounts with…
Post Covid 19, NBFCs and Banks can focus for business in the used car space and in the two wheeler and high end bicycle segment. People will shun public transport at least for a year till confidence is restored or a vaccine or a cure is found and put in…