Budget provides a big boost to NBFCs, with a special focus on MSMEs; The completion of 50,000 dwelling units under stressed housing projects, with another 40,000 units set to be delivered in 2025, offers much-needed relief to middle-class families burdened by EMIs and rent.
Jairam Sridharan, MD, Piramal Finance:
George Alexander Muthoot, MD, Muthoot Finance
Rajiv Sabharwal, MD & CEO, Tata Capital:
Arvind Kapil, MD & CEO of Poonawalla Fincorp:
Tribhuwan Adhikari, MD & CEO, LIC Housing Finance
Girish Kousgi, MD & CEO, PNB Housing Finance:
FinTech BizNews Service
Mumbai, February 1, 2025: The captains from the NBFC and HFC sectors have hailed the union budget for the FY2025-26, presented by Union Minister of Finance and Corporate Affairs, Smt Nirmala Sitharaman in the Parliament today.
Sudipta Roy, Managing Director & CEO, L&T Finance:
“Budget announcements for FY26 have managed to hit the right balance between the need for a consumption stimulus and structural support towards a sustainable growth path for the economy.
Proposed income tax reliefs for the middle-class population should bring in plenty of cheer and boost consumption. At the same time, CAPEX thrust has been maintained in the budget with targeted support to critical sectors. The economy thus gets both consumption and CAPEX push to strengthen growth momentum in the year.
Reforms in the identified key engines of development- Agriculture, Investment, MSMEs, and Exports, will help accelerate transformation of these sectors as key growth drivers. Focus on Agriculture and Urban transformation will significantly help in unleashing the potential of the economy in the medium term. Announcements around ‘Grameen credit score framework’ and commitment to revamp KYC norms are big positives for the lending business. Focus sectors identified for MSME support are mostly labour-intensive sectors and besides driving manufacturing push, it will also help augment employment generation, skill development, credit availability etc.
Most importantly, the underlying intent of deregulation and trust is very positive for the private sector. Overall, a well-balanced budget that sets the path for broad-based and sustainable domestic growth despite global headwinds.”
Manish Shah, MD and CEO of Godrej Capital:
“The recent budget measures reaffirm the government’s commitment to strengthening the MSME ecosystem, a critical pillar of India’s economy. By enhancing credit guarantees and increasing classification thresholds, these reforms will unlock new opportunities for small businesses, enabling them to scale operations with greater financial flexibility. NBFCs and HFCs will play a crucial role in ensuring these benefits reach MSMEs efficiently, bridging credit gaps and driving financial inclusion.
Particularly commendable is the focused push toward women entrepreneurship. The introduction of a dedicated scheme for first-time women entrepreneurs from underserved communities is a game-changer, fostering inclusive growth and financial independence. Additionally, providing term loans to high-performing MSME exporters will fuel competitiveness and global expansion.
By improving access to credit, reducing borrowing costs for startups, and introducing tailored financial solutions for micro-enterprises, these initiatives collectively create a more resilient and future-ready MSME sector. With their agility and deep market expertise, NBFCs and HFCs will be instrumental in supporting small businesses and homebuyers alike, strengthening India’s journey toward self-reliance and sustained economic progress.”
Arvind Kapil, MD & CEO of Poonawalla Fincorp:
“The Budget thoughtfully reflects the current phase of our nation’s journey. It strikes the right chord by focusing on the two pillars that form the backbone of India’s economy—the middle class and the MSME sector. This is going to be significant step giving a major positive to retail lending and MSME finance.
Rightly termed a ‘consumption-driven budget,’ it aims to accelerate economic growth through multiple engines, with private consumption at its core. The great Indian middle class is the key driver here. Meaningful tax relief will boost disposable income, fueling both consumption and investments.
A standout feature is the revamped MSME framework, designed to empower over 1 crore MSMEs to scale operations, embrace technology, and generate employment for India’s youth. This Budget sets the stage for a vibrant, self-reliant India powered by consumption, innovation, and job creation.”
Girish Kousgi, MD & CEO, PNB Housing Finance:
“The Union Budget 2025 reflects the government’s steadfast commitment to strengthening the Indian economy through fiscal prudence and growth-oriented policies. The housing sector continues to be a key pillar of economic development, and we are encouraged by the progressive measures aimed at enhancing housing affordability and accessibility for millions of Indians.
The increase in the income tax exemption limit to Rs12 lakh will significantly boost disposable income, enhancing purchasing power and potentially increasing housing demand. Additionally, the completion of 50,000 dwelling units under stressed housing projects, with another 40,000 units set to be delivered in 2025, offers much-needed relief to middle-class families burdened by EMIs and rent. The establishment of SWAMIH Fund II, a Rs15,000 crore blended finance facility, will further accelerate the completion of another one lakh housing units, reinforcing the government's focus on resolving housing stress.
We are optimistic that the sustained economic momentum, coupled with the government’s visionary policies, will drive long-term growth in the housing and real estate sectors, contributing to India’s vision of inclusive and sustainable development.”
Tribhuwan Adhikari, MD & CEO, LIC Housing Finance
“Today’s Union Budget announcement is a forward-thinking and inclusive roadmap for strengthening economic growth while increasing the disposable income for individuals. The middle-class, especially salaried individuals will find it easier to plan for homeownership now with the exemption of income tax for earnings up to Rs12 lakh. This shall be positively impacting the demand for affordable housing.
Initiatives such as the Rs1.5 lakh crore capex-linked loans to states and the expansion of SWAMIH Fund are favorable factors. Additionally, the National Geospatial Mission and improved land record modernization will further streamline real estate transactions and enhance transparency. Overall, the budget reflects government’s commitment to a well-rounded economic strategy supporting sentiments across sectors"
Rajiv Sabharwal, MD & CEO, Tata Capital:
“The Union Budget FY26 lays a strong foundation for inclusive growth, financial empowerment, and long-term economic resilience. With enhanced credit access for MSMEs and startups, alongside targeted support for exporters and underrepresented entrepreneurs, including women and marginalized groups, the government is fostering entrepreneurship and driving a more equitable, self-reliant economy.
The extension of tax relief is poised to boost consumer confidence, while initiatives like SWAMIH Fund 2 aim to address housing challenges, offering relief to middle-class homebuyers managing EMIs and rent. These measures will stimulate demand, unlock growth in the real estate industry, and help meet the housing needs of a growing population.
The increased capital expenditure signals a clear commitment to infrastructure-driven growth, job creation, and India’s competitiveness, further aligning with the vision of Viksit Bharat through efficient capital allocation to key sectors.”
Jairam Sridharan, MD, Piramal Finance:
"For the past few years, the Government has been the main actor in driving GDP growth. This budget is an invitation from the government - for private consumption and MSME sector to step forward and take a lead. A prudent borrowing plan for next year, contained spending and adherence to fiscal discipline offers space to fast track a change in monetary policy stance. So overall - the budget lays the groundwork for a rate cut cycle to start, and offers mechanisms for consumption and private sector growth to pick up."
George Alexander Muthoot, MD, Muthoot Finance:
The Honorable Finance Minister today presented a balanced and inclusive budget that strongly aligns with the vision of ‘Sabka Vikas,’ ensuring economic opportunities for major pillars of the society - the poor, youth, farmers, and women. The significant thrust on agriculture, with targeted credit measures under the Prime Minister Krishi Yojana and the expansion of Kisan Credit Cards, will empower 1.7 crore farmers. This will not only enhance agricultural productivity but also boost rural consumption.
Furthermore, the government's focus on MSMEs, women entrepreneurs, and first-time business owners through term loans of up to Rs2 crore and structured capacity-building initiatives will drive small business growth, fostering employment and strengthening the country’s production ecosystem. Additionally, the Rs10,000 crore Fund for Startups will fuel entrepreneurship. These measures will contribute to a more self-reliant and resilient economy. As India's largest gold loan NBFC, Muthoot Finance remains committed to supporting this vision by facilitating seamless access to credit and financial inclusion for individuals and businesses across India.
Further, the union budget has been supportive of middle class and we believe that the increased disposable incomes will fuel aspirations. All of the above initiatives will not only fortify the economic foundation but also drive a more financially inclusive future."
Rajendra Kumar Setia, MD & CEO, SK Finance:
“This marks a significant step towards strengthening India’s economic backbone, focusing on MSMEs and the middle class while maintaining fiscal prudence. The revision of MSME classification is going to be a major game changer for the manufacturing sector. With over 1 crore MSMEs already driving 45% of India's exports, the enhanced investment and turnover limits will empower these businesses to scale up operations and embrace technological innovation.
Enhancement of the credit guarantee cover for MSMEs to Rs 10 crore; term loans for exporter MSMEs to Rs 20 crore and start-ups to Rs 20 crore, will provide a big fillip to the industry. These measures will enable NBFCs in scaling up their operations, and will drive inclusive growth. The announcement of customized credit cards with a Rs. 5 lakh limit for micro-enterprises will increase liquidity and lead to establishment of new entrepreneurs. All in all, Budget 2025 will have a positive impact on India’s economic growth trajectory, with MSMEs driving growth.”
Ondrej Kubik, CEO, Home Credit India:
“The Union Budget 2025 highlights a decisive push towards financial empowerment and inclusion and a digitally-driven economy. The government’s vision to expand access to formal credit, strengthen the digital financial literacy, and enable a thriving fintech ecosystem aligns well with our mission at Home Credit India. We welcome the budget’s provisions aimed at supporting the Middle and Lower-income groups, enhancing consumer protection, and fostering responsible lending practices. The focus on ease of compliance and ease of doing business, rationalisation of customs duties, widening the scope of MSMEs and the sustained emphasis on agrarian economy are all positive steps, reinforcing the core growth elements. As a responsible lender, we remain committed to driving financial inclusion by offering simple, transparent, and accessible credit solutions to underserved communities. By leveraging technology and innovation, we will continue to support India’s vision of a financially resilient and digitally empowered nation, ensuring that millions of consumers can achieve their financial aspirations with confidence."
