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Rajesh Sharma, Managing Director, Capri Global Capital
“The concept of pledging gold as an emergency fund has existed for centuries and is widespread in rural markets as an effective tool for tapping short-term credit. The NBFCS has met the credit demand of an under-penetrated market, usually in small tickets, with sizes ranging from INR 50,000 to INR 1 lac. This will pave the way for banks to participate with greater potency and fund gold loan NBFCs at subsidized rates. Facilitate the institutionalization of credit.
Despite limited resources and scarce opportunities, rural women entrepreneurs show immense potential to add value to the Indian economy by entering the MSME sector. More than INR 1 million ticket size financing schemes for female MSME entrepreneurs like PMAY will promote inclusiveness and accelerate the entrepreneurial journey.
MUDRA refinancing is currently only available up to INR 100 crore but the government is considering increasing the cap to allow for a wide range of eligibility, such as age, ticket size, end use, cost of funds to broker NBFC, spread etc. You can outline. Set guidelines for intermediary NBFCs to define underwriting criteria such as classification criteria for secured and unsecured loans, payment schedules, required documentation, and loan amounts. This will facilitate financial growth for micro category entrepreneurs in the Rs 1-5 crore.
In addition, the 2021-22 Budget has reduced the minimum loan amount eligible for debt collection under SARFAESI from Rs.5 million to Rs.2 million. However, the same is available for HFC if the ticket size is small. This cap should be amended to bring smaller NBFC loans into SARFAESI scope. The cap may be further reduced below INR 1 million. “
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