InvestorQ : I recently read a report that NBFCs need to repay Rs.35,000 crore of debt in the month of September. How are they going to manage it and do you see problems?
Moii Chavate made post

I recently read a report that NBFCs need to repay Rs.35,000 crore of debt in the month of September. How are they going to manage it and do you see problems?

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Sam Eswaran answered.
2 years ago
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This is part of normal debt repayments that comes up in September but you are right that it is huge sum and could be a real worry for NBFCs as a whole. The problem has become more acute after the IL&FS default last year and the series of DHFL defaults this year. You must first understand the problem that NBFCs are going to face in the month of September and the options in front of them.

NBFCs historically had large loan repayments coming up in the month of September which would be rolled over each year. Hence it did not pose any problems. However, there is close to Rs.35,000 crore worth of NBFC debt that is coming up for repayment in the month of September and this will have to be completed before the end of the month.

The challenge is that things have changed after the IL&FS crisis last year and the near fall of Dewan Housing in the current year. With combined debt of Rs.190,000 crore, these 2 companies pose a systemic problem and that has made lenders wary of NBFCs overall. Therefore, roll over this time around will either be difficult or it will happen at a very unaffordable rate of interest.

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