RBI Seeks Details On NBFCs’ Supply Chain Finance Products

by · Inc42

SUMMARY

  • Supply chain finance is provided by NBFCs as term loans, with durations ranging from 30 to 180 days, where each loan tranche is considered a separate term loan within the overall credit limit set by the NBFC for the borrower
  • Most MSME are not capital intensive models but require working capital and based upon initial credit data the working capital is then provided
  • This facility is mostly used by MSMEs with seasonal or cyclical business patterns