The NBFC and Affordable Housing sector is now reeling under liquidity issues and margin compression due to a panic in the Debt Capital Markets brought on by the IL&FS fiasco. The government can take several steps to ease this pain, from correcting accounting norms for Banks buying securitized NBFC pools (thus freeing up Board approved limits for funding to NBFC’s), to including NBFC’s/HFC’s in the Priority Sector Lending Certificates (which will provide an efficient way to route bank capital to the end-customer).
Bhavin Patel, LenDenClub
Peer to Peer (P2P) lending is growing at rapid pace. Some tax sops to this upcoming industry will definitely help companies to flourish their business faster.The second expectation from the budget is SOLUTION OF ANGEL TAX. It will help start-ups and upcoming founders to attract angel investment without tax implications.
The union government may also think of looking at P2P lending companies five year down the line. P2P companies can disburse multibillion dollar worth Loans. To achieve that there could be a small amount of tax free investment limit allowed under section 80c. If the government can make the investments done through P2P lending tax-free, more investors will join and this will be a great help especially for individual borrowers & MSMEs. To boost P2P lending sector, recently UK government have allowed P2P lenders to invest up to £20,000 a year across P2P platforms tax free. Similar structure can be developed in India, based on our tax structure.
Ajit Kumar, RupeeCircle
With increased government focus, availability of aadhaar stack & improved digital infrastructure, India is poised to drive financial inclusion to the masses. Fintech & specifically Peer-to-Peer (P2P) lending has immense potential to reach out to the under-served segments with innovative offerings at reduced costs. In this regard, we look forward to the budget initiatives assisting in spreading the awareness & easing the customer on-boarding as well as KYC verification processes.