'Allow NBFCs to borrow'

“NBFCs serve vital lending needs of under-served sectors like small and medium enterprises. They should be allowed to deduct provisions for bad debts as an expense before computing taxable income,” the chamber said.

It also suggested that the benefits extended to banks should be extended to NBFC sector as well.

Banks are able to recover funds from loans that have gone bad under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) 2002 Act.