NBFCs seek priority sector tag for 2-wheeler loans financed by bank credit

Finance companies have sought priority sector lending status for the money they get from banks to give loans for buying two wheelers (TW). This would help them get cheaper funds from banks and increase lending, especially in rural areas, according to the Finance Industry Development Council (FIDC).

The industry lobby group said in a plea to the Reserve Bank of India that two-wheelers play a crucial role in the rural economy as they help improve the standard of living, and bring about convenient and safer movement at affordable price. They also help increase earnings.

“Considering the value and usage, we