Bad news for borrowers: Rise in NBFCs' funding cost may make loans costlier

When India’s shadow lenders sneeze, lots of others catch a cold.

Debt concerns have pushed funding costs for non-bank financing companies to multi-year highs in recent weeks. That’s bad news for all the borrowers who rely on the lenders in the world’s fastest-growing major economy -- from poor entrepreneurs getting micro loans for food delivery businesses to property tycoons looking to roll over debt that fueled a construction boom.

The development will make money more expensive for a huge range of enterprises and individuals, at a crucial time for policy makers. Teetering economic activity is already pressuring the central bank