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Non-bank financial companies (NBFCs) and online lending companies (fintechs) are expected to get a tax break in this year’s budget. The companies say that measures to increase liquidity flows, low-cost financing for NBFCs operating in the retail sector, as well as exemptions on GST and TDS, should be introduced into the budget.
This industry says that in recent years, the government has made many reforms. However, in view of the challenge of the Corona crisis, fintech and NBFC should get some relief on the fiscal front in this year’s budget. He says this will give the economy a boost too. Furthermore, with the expansion of business, employment opportunities will also increase.
easy availability of cash
NBFCs and fintechs take loans from banks and then pass them on to consumers. The companies say they face a lot of difficulties in raising capital, so they do not distribute the loans easily. Businesses are demanding that in the budget, the Finance Minister is expected to soften the rules to raise cash for them. Its final benefit will be for consumers.
Consumers bear the burden of expensive loans
Milind Govardhan, CEO and MD of Leaf Fintech, says that fintechs take loans from banks at high interest and then pass them on to consumers. In such a situation, the burden of the expensive loan falls on the pocket of the consumers. Govardhan says fintechs are easier for consumers to reach than banks, but are less preferred by consumers due to higher interest rates.