NBFC Funding Cost

I am most thankful for the recent article covering the current situation prevailing in the NBFC industry. Do you think the schemes imposed by the government and the RBI will address the issue of higher funding cost in the sector? 

- Akash Puri

Editor Responds: Thank you for writing to us. NBFCs and other microfinance companies look for medium to long-term money and under the current schemes offered by the government and the RBI, this relief is only available for a period of three months. The whole purpose of the scheme is not for cost reduction but to make sure any company having a mismatch and requires immediate money can get it and will not default. Hence, companies facing short-term pressure can avail the benefits of these schemes to repay their existing lenders and further get three months to repay the liability. We hope this answers your question. Keep writing to us with your queries!