SIDBI Extends Loan Repayment Term to 1-Year for NBFCs, MFIs

Source: Money Control

Small Industries Development Bank of India (SIDBI) has extended the repayment period of loans to non-banking finance companies (NBFCs) and microfinance institutions (MFIs), announced under Reserve Bank of India's (RBI) special liquidity scheme, to one year from the 90-day period earlier.

This is a significant development  as microlenders felt the earlier repayment rules were stringent considering the present operating environment. Due to COVID-19 induced lockdown, operations of these firms have come to a halt. Most MFIs and NBFCs felt that they will not have enough time to make repayments to SIDBI in just 90 days.