the class of borrowers that nbfcs cater to has been the worst hit due to the 21day national lockdown mumbai nonbank lenders concerned about the discretion banks would enjoy on demanding repayments through a threemonth grace period plan to approach the finance ministry and the reserve bank of india rbi on directing banks to mandatorily pass on the benefits of the moratorium to these lastmile financiersthe core point is that while nbfcs nonbanking financial companies will have to give a threemonth moratorium to almost all their borrowers what is the assurance that they will also get commensurate moratorium from their lenders asked raman agarwal cochairman finance industry development council an industry body representing nbfcs we are presenting our case to the rbi and the ministry of finance for urgent redressal of our concerns advt last week the central bank sought to cushion both borrowers and lenders against the unprecedented disruption engendered by the covid19 outbreak allowing companies a threemonth grace period on loan repayments banks will now have the discretion in deciding the limits on working capital with mint road saying that no payment miss be considered a default and reported to credit information companiesthe class of borrowers that nbfcs cater to has been the worst hit due to the 21day national lockdown people owning auto rickshaws tempos erickshaws small shopkeepers and the micro small and medium enterprises have already expressed their inability to repay and most small and midsized nonbank lenders that cater to such clientele will have to extend them the moratorium benefits nbfcs are also seeking a similar 90day moratorium on interestprincipal payments due on bonds mutual funds and commercial papers an aspect that has been left out of the moratoriums scopenbfcs are concerned because banks after the default by ilfs in october 2018 closed their funding tap to such entities even the partial credit guarantee scheme announced specifically for para banks to tide over the liquidity squeeze was only implemented after a nudge by the finance ministernbfcs and hfcs housing finance companies still remain a stable asset class and the perceived risk aversion after the ilfs crisis will need a sharp review given the current situation of lockdown and its deep impact on retail customers said manish jaiswal ceo magma housing finance read alsoon lending by banks to nbfc hfcs to be part of priority sector in fy21 rbiwhat 3 month moratorium on repayment of term loans means for borrowers by saloni shukla et bureau published on mar 30 2020 at 0743 am ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred against a certain community out of context spam others report join the community of 2m industry professionals subscribe to our newsletter to get latest insights analysis download