Higher interest rate increases repayment amount, limits refinancing options for SME borrowers with loans against property: Moody's
With rising funding cost, the NBFCs have increased interest rates for loans against property (LAP) to small and medium-size enterprise (SME) borrowers, which is heightening repayment and refinancing risks for these loans. This situation is credit negative for Indian asset-backed securities (ABS) backed by loan against property (LAP), Moody's said.
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Moody's Investors Service on Monday said higher interest rates have increased repayment amounts and limited refinancing options for SME borrowers. Source: Reuters