Heads of microfinance institutions (MFIs) emphasize the difficulty in lowering interest rates without access to cheaper funds, suggesting a dedicated credit guarantee scheme or refinance facility. With current rates between 21% and 24%, there is regulatory pressure to reduce them. Alternatives include revamping existing credit guarantee schemes and introducing an interest subvention scheme.
UBS upgrades Bajaj Finance shares, LT Finance as it sees NBFCs better placed than banks. Here’s why
UBS upgraded Bajaj Finance to Neutral and L&T Finance to Buy, citing improving asset quality and a revival in unsecured lending. The brokerage sees scope