New Delhi, July 10 -- Is an umbrella worth anything during a storm? Non-banking financial companies (NBFCs) face this question now as they try to balance their cash flows with many borrowers choosing to defer paying equated monthly instalments (EMIs) for three-six months.
On 30 June, the Reserve Bank of India (RBI) spelt out the details of how to access special funding announced by the government for NBFCs earlier in the year. To get money through a special purpose vehicle, an NBFC will need to have a healthy capital ratio, net bad loans at less than 6% of their loan book and not have missed repayments in the year to August 2018. Lenders should also have an investment-grade rating.
The requirements are not hard to meet. But the access to ...