Finance Minister Nirmala Sitharaman on Monday brought down the value of loans that can be introduced for debt recovery under the SARFAESI Act to Rs 20 lakh from Rs 50 lakh for NBFCs having a minimum asset size of Rs 100 crore.
Sitharaman, while presenting the budget for 2021-22, said it will bring in credit discipline and also protect the interest of small borrowers.
"To improve credit discipline while continuing to protect the interest of small borrowers, for NBFCs with minimum asset size of Rs 100 crores, the minimum loan size eligible for debt recovery under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 is proposed to be reduced from the existing level of Rs 50 lakh to Rs 20 lakh," the finance minister said.
Published 01 February 2021, 09:59 IST