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Last updated: 16 Jun, 2018  

msme-THMB-2010.jpg Lend more to MSMEs, RBI urges NBFCs

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SME Times News Bureau | 16 Jun, 2018

Non-banking financial companies (NFBCs) need to focus more on medium and small enterprises, the returns from which are much higher than from large corporates to whom NBFCs have much larger exposure, a top Reserve Bank of India (RBI) official said recently.

The RBI also asked NBFCs to meet the legitimate funding needs of the micro, small and medium enterprises (MSMEs).

"NBFCs are trying to be the mirror image of banks, as much of your lending now is towards large corporate and your lending to MSMEs is not much, where you get better margins," RBI Chief General Manager (department of non-banking supervision) P. Vijaya Kumar said at an event here organised by the Indian Merchant Chamber.

"This is despite the fact that by lending to large corporates NBFCs are getting lower returns than what they would have got from by lending to MSMEs," he said.

"When you are lending, you cannot give on money to everybody. You need to finance those activities that are relevant. If you look at global value chains and get finance done then you won't get into any losses," he added.

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MSME support
Dr NARAYANRAO LS | Fri Jun 22 23:34:08 2018
Thanks a lot for cosidering MSMEs Support i would like to say pl supportc technical graduates like Young engineers deplamo holders paramedical graduates Agricultural hirticultural graduates interested in sustainable agriculture developments organic AVP (agro-vet and pharma)concentrated small organisations for building a strong and healthy India and globe for the next generation Interested pl feel free to contact Dr NARAYANRAO LS BSc agri with 40yrs rich experience as serving thousands of small medium faemers in india wirh many new innivative ideas for Sustainable AVP projects and supporred by big team if engineers doctors afri reasearch scientists in india

Lending to MSMEs
Milan Mehta | Wed Jun 20 14:07:53 2018
Financers always look at assured returns and not always % return. Unfortunately MSMEs lack in providing all relevent data in short time, which are required for ascertaining quantity, period and rate of interest for the NBFC. That maybe the main reason for the NBFC avoiding them......Milan from A Micro industry.

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