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Cost of Borrowing for NBFCs and HFCs Set to Increase

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Cost of Borrowing for NBFCs and HFCs Set to Increase

India Ratings just dropped some news! They say that the cost of borrowing for non-banking and housing finance companies might tick up a bit. Why? Well, geopolitical tensions and shaky markets are making it hard for banks to cut rates. So, hold onto your wallets, folks! It looks like borrowing costs are in for a bumpy ride ahead.

few days ago | Press Trust of India

Quick rundown

1.Cost of funds for NBFCs and HFCs may rise slightly.
2.Geopolitical tensions and macroeconomic uncertainty affect finance costs.
3.Weak transmission of policy rate cuts limits borrowing cost reduction.
4.Bank lending to NBFCs increased significantly in February 2026.
5.Funding mix changes will shape the finance sector's future dynamics.

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