Sumary of NBFCs open their wallets as demand for credit surges:
- Demand for loans to purchase trucks and construction equipment is gathering steam and back to the pre-Covid levels on rising infrastructure spending by governments and capital expenditure by private companies.
- Non-Banking Finance Companies (NBFCs) such as , Edelweiss and IIFL that were shrinking to conserve capital have opened their wallets and are lending as much as Rs 4,000 crores a month.
- Country’s largest mortgage lender HDFC Ltd is witnessing a significant rise in home loan demand similar to pre-covid levels.
- “Trucks’ movement began to regain normalcy prompting many to expand businesses.
- ” Shriram Transport is disbursing more than Rs 4,000 crore every month, which was like the times before the pandemic dampened businesses.
- Additional loan demand is coming from equipment finance, tractor and light commercial vehicles.
- Edelweiss is bracing up for a spurt in credit demand for buying construction equipment amid rising capital expenditures.
- “In August and September, we have attained business volumes similar to pre-covid levels for secured loans,” said Deepak Mittal, CEO at ECL Finance, the non-bank entity of Edelweiss group.