Budget 2021: Expectations from the NBFC sector

Before Finance Minister Nirmala Sitharaman presented the federal budget to Parliament on February 1, 2021.

Here’s what the NBFC sector expects from Finance Minister Nirmalashi Salaman:

RevFin Founder and CEO Sameer Aggarwal:

“The 2022 budget is expected to grow the EV industry and become one of the largest contributors to GDP. The biggest challenge for the industry is access to credit and the cost of credit, therefore. Now is the time to make credit available in the market through budget intervention.

To support this, create a debt fund at a low interest rate, provide it to all financial institutions that lend in space, and public sector banks to work with FinTech platforms to provide EV loans. Need to create a synergistic effect.

Another way to increase credit supply is to make capital more accessible. NBFC, Includes those that have not been highly evaluated. This is very important for small new NBFCs that are funding individuals and small businesses.

Ideally, the government would create a guarantee scheme for banks to lend to such NBFCs, Bank.. It is necessary to create a structure to provide financing to such NBFC. This can be followed uniformly without fear of making the wrong decision. “

Ram Kewalramani, Co-Founder and Managing Director of CredAble:

“After the 2020 cataclysm, India looks forward to innovative and strong support. Indian government It essentially fights and addresses the brutal pandemic cascade effect in the form of various incentives, tax cuts, grants and access to credits.

When I learned about this year publicly budget It was paperless and digitized, and FM’s words, “This is nothing like the last 100 years,” really raised expectations.

Liquidity is a lifeline of these difficult times, and will be even more so in 2021. Therefore, the 2021 budget is structurally a high-tech financial institution, as NBFC, especially the lending sector start-ups, technology and non-banks in the field of working capital lending will ultimately change the economic wheel. “

Rohit Garg, Co-Founder and CEO of SmartCoin:

“The 2022 budget expects to spend on liquidity and guarantee schemes, which will help increase credit supply and make NBFC more accessible to capital.

The NBFC sector is expected to grow moderately, and we expect new funding to be provided to this sector to support the modest growth next year.

From the 2021 budget, we look forward to partnering with a new era of NBFC / FinTech, where the government is promoting more banks and larger NBFCs and providing credit to those who are not serviced by banks. I will.

We will also propose partnerships with established banks, NBFCs with fintech players, and create an environment that accepts initiatives such as Sahmati account aggregators and OCEN.

With the constant technological advances in the fintech industry, the government is looking forward to simplifying the complex process of legacy. Recently, the adoption of video KYC has been a welcome move, and it has become possible to expand to various financial services. “

Sandeep Wirkhare, Director and CEO of Indian School Finance Company:

“The 21-22 budget requires special provisions for the education sector, which has been hit hardest by the pandemic. The quality of education is directly influenced by the quality of the school’s infrastructure. Private institutions, including NBFC, It has played a very important role in this transition, which was the most affected last year.

Providing housing-equivalent education by implementing a similar interest subsidy system for educational institution loans for infrastructure development will greatly help to support the coveted quality education in India.

Also, allocating CSR funds to invest in bonds floated by NBFC to finance education infrastructure school Raise money at an affordable price.

The pandemic helped the country break away from a cash-driven economy. It’s easier to embrace the cashless future. Government must promote relevant measures to gain momentum for this ongoing development. This year, we need to review the existing security policies of our online payment platform and introduce new ones to keep our data safe.

today, India We have developed a robust payment infrastructure. The government’s responsibility is to promote the spread of the Internet and ensure that this infrastructure is used optimally. Leadership has led several reforms aimed at facilitating digital payments.

However, we now need to focus on more robust implementations. The 20-21 year may have helped entrepreneurs across business segments understand the usefulness of digital payments. Future budgets need to emphasize the implementation of robust methodologies.

Governments should also work to improve credit accessibility. This can be achieved by extending credit guarantee schemes such as Pradhan-Mantri MUDRA yojana to other sectors. These are currently supported by banks, NBFCs and microfinance institutions.

It is also essential that the government mobilize digital financial services to raise awareness of why digital literacy is a need for time. We also need to educate people on how they can benefit from using digital financial services by gaining access and understanding. “

Sunoor Kaul, Co-Founder and Director of Origo Commmodities:

“Budget 2021-2022 needs to focus on the infrastructure issues that exist in the agricultural sector. In this context, there are some big gaps between warehouses, silo storage, and related infrastructure.

Governments need to pay attention to the entire agricultural value chain to increase productivity and reduce post-harvest losses.

Lending to the agricultural sector through NBFC should also be classified as Priority Sector Loan (PSL) credits. Bank lending to this segment is currently considered PSL credit, but does not apply to future lending through NBFC.

In addition, the segment has a $ 95 billion deficit.To promote agricultural investment as an asset class, we need to unleash liquidity by increasing Investor Involvement in the agricultural supply chain.

A good way to do this is to ease income and capital gains taxes on agricultural products such as pass-through certificates (PTCs) and other securitization modes. By doing so, more individual investors will be able to join the domain. “

Budget after 2021: Expectations from the NBFC sector first appeared in TechGraph.

Budget 2021: Expectations from the NBFC sector

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