InvestorQ : How do NBFCs in India plan to service the loan payments due over the next few months?
NISHA Nayak made post

How do NBFCs in India plan to service the loan payments due over the next few months?

Answer
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Mitali Bhutta answered.
4 months ago


NBFCs have loan payments of over Rs.75,000 crore in the next three months and that is likely to be the litmus test of these NBFCs. Most companies are facing serious liquidity issues. Many of these are top rated NBFCs but even they could have problems with cash flows. This has also created a challenge for the banks because they don’t want the NBFCs to use bank loans to pay off their bonds and leave the banks holding the baby. NBFCs are in a dilemma. They are caught between banks reluctant to give moratorium benefits on one side and large bond investors on the other side. Most NBFCs have admitted that the guarantee and partial guarantee schemes will alleviate the concerns somewhat extension of moratorium will be the key. NBFCs complain that most of the funds and guarantee schemes are only available to the top-rated NBFCs or for a very short tenure. NBFCs want a long-term window of at least three years to access credit. The only problem is there is no one willing to underwrite that kind of risk.