NBFCs To Give Fresh Loans In June

NBFCs are set to resume sanctioning fresh loans in June with sentiment boosted by the government stimulus and easing of the lockdown. The Edelweiss Group, Mahindra Finance, IIFL Finance and Shriram Transport Finance have started disbursing loans with their clients demanding to draw down the limits sanctioned in March. Microfinance firms have also started disbursing emergency loans to help grassroots borrowers tide over the immediate crisis. NBFCs below the top rung, too, are gearing up to lend afresh, with the credit guarantee programme announced by the government likely to boost their fund flow. The RBI’s targeted long-term repo operation for smaller firms (TLTRO 2.0) will get a better response now as the risk would be borne by the government fully or partially.