Industry remains sceptical about loans to NBFCs under partial guarantee

Finance Minister Nirmala Sitharaman last Friday gave out tall numbers on how loans worth Rs 20,000 crore to non-banking finance companies (NBFCs) would be approved in the next couple weeks under the partial credit guarantee (PCG) scheme, which has found success in injecting liquidity into NBFCs. Cut to industry opinion, the narrative is different — while it doesn’t disregard these numbers, it apprehends the actual sanctions and benefits to be lower.
 
Scepticism over the quality and value of underlying assets and the scheme, excluding big-ticket loans (or wholesale loans), may remain the barriers in the PCG scheme’s success.  The