Union Budget 2025 | Want NBFCs to be recognised as part of the priority sector: Mathew Muthoottu, Managing Director, Muthoottu Mini Financiers

This will facilitate bank lending to NBFCs at lower interest rates, the MD said.

The Union Budget for the upcoming financial year is all set to be presented on February 1, 2025, by Finance Minister Nirmala Sitharaman. According to reports, the Narendra Modi government may consider slashing income tax for individuals earning up to Rs 15 lakhs per annum and extend the tax relief bracket in a bid to provide relief to the middle class and boost consumption.

Ahead of the Budget, Mathew Muthoottu, Managing Director, Muthoottu Mini Financiers said "we urge the Union Budget to recognize NBFCs as part of the priority sector, facilitating bank lending to NBFCs at lower interest rates. Such a move would empower rural communities, allowing us to offer more competitive lending rates and contribute to their economic empowerment. This step will not only strengthen rural livelihoods but also drive inclusive growth and reinforce India’s broader economic framework."

He noted "Muthoottu Mini Financiers Limited emphasizes the critical role of Non-Banking Financial Companies (NBFCs) in supporting rural India's economic needs."

The MD continued "While we welcome the Reserve Bank of India’s regulatory measures aimed at ensuring financial stability, it is essential to recognize the difficulties rural populations face in accessing traditional banking services due to stringent requirements. NBFCs like ours provide essential financial services by offering loans up to ₹3 lakhs for agricultural needs, MSMEs, and other small-scale necessities without any heavy measures."

Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.