Budget Booster For Economy
BY RAJESH SHARMA
Managing Director, Capri Global Capital Ltd
The Budget has clearly kept the focus on boosting economic growth. Emphasizing to make India self-reliant and strengthen the country’s position in the global economic landscape, the Finance Minister has given systematic importance to the NBFC sector through a slew of measures that will ease the lending business.
The reduction in the loan limit from Rs 5 million to Rs 2 million under the SARFAESI act for NBFCs, with a minimum asset size of Rs 100cr and above, would mean that the debt recovery can enforce the security interest for lower ticket size loans. This will help the NBFCs to improve their ability to recover smaller loans and strengthen the overall financial health. Allotment of 20, 000 crores for bank recapitalization and setting up an ARC to take care of NPAs of stressed banks and manage through alternative investment funds would securitize the irrecoverable loans.
Extension the eligibility of erstwhile tax sop on a home loan by additional one year up to FY’22 is a welcoming support to de-bottleneck issues surrounding the affordable housing segment.