Why NBFC’s which do Mircrofinance are specifically categorised as NBFC-MFI. We do not see much another classifications in other areas like vehicle finance, personal loans. One other case is Housing finance, where if you got classified as NBFC-HFC. In this case, they can access funding from NHB which is a low-cost funding. Once the size of NBFC reaches certain size, seems this low cost funding also stops. Recently IndiaBulls Housing mentioned that they are asking RBI to classify themselves as NBFC instead of NBFC-HFC, since there is no advantage is getting classified as NBFC-HFC.
On similar lines, what is the benefit companies are getting if they are getting classified as NBFC-MFI?
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