NEW DELHI : Banks, under the aegis of Indian Banks' Association (IBA), are mulling providing three a month-moratorium on loans given to non-banking financial companies to help them tide through the current stress caused by the coronavirus crisis.
Non-bank lenders or NBFCs have been demanding this moratorium, saying after all they too are borrowers. NBFCs predominantly depend on banks for their funding needs.
Besides, these naon-bank lenders have sought an additional funding window from banks to tackle liquidity crunch in the wake of Covid-19.
Non-banking finance companies (NBFCs) or shadow banks cater to mainly MSMEs, infrastructure and real estate sectors that have been hit hard due to lockdown.