The gold loan NBFCs look forward to receiving the priority sector status which is of paramount significance
FinTech BizNews Service
Mumbai, July 21, 2024: Basis the upcoming Union Budget 2024-25, to be presented in Lok Sabha on 23 July, 2024, Shaji Varghese, CEO, Muthoot FinCorp, has revealed his budget expectations:
“While the gold loan NBFCs look forward to receiving the priority sector status which is of paramount significance, we also expect the government to look at risk weight in gold loans. The risk weight may be treated at par with banks or similar to home loans as both have LTVs regulated by the Central Bank. Gold loan certainly serves a larger purpose of financial inclusion and can help enhance supply of credit aiding to the economic growth. We hope to see new initiatives for enhancing access to credit among MSMEs especially in the rural areas in this upcoming budget. More liquidity assistance to NBFCs and credit guarantee to MSME lending can help enhance supply of credit. We anticipate continued budget allocations towards digital initiatives and technologies. Financial inclusion is a significant enabler for Viksit Bharat 2047 and while NBFCs are focused on the same, we expect the government to take some measures to increase credit supply there by enabling the SMEs and rural business development too.”
