TLTRO scheme extension to NBFCs - Quote by U GRO Capital

It is heartening that RBI acknowledges that NBFCs do a commendable job to provide credit to the underserved and New To Credit (NTC) segments in various sectors. The exclusion of credit to MSME from NDTL would expand the credit for MSMEs and this combined with the Co–Lending scheme between Banks and NBFCs can open credit for the NTC MSME customers.

The TLTRO on Tap scheme to NBFCs for incremental lending will usher in effective liquidity for NBFCs, which would work hand-in-hand with the new co-lending guidelines. The positive impact is that it would enhance the NBFCs’ ability to provide a credit lifeline to capital-starved MSMEs, including the NTC small businesses, supporting not only their revival and stabilization but also help look at growth. The credit impact can be further expanded significantly with the extension of Partial Credit Guarantee (PCG) Scheme for portfolio purchase of loans for these sectors.