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In order to make it easier for small businessmen to get loans through non-banking financial institutions, the government may announce making the trade receivables discounting system more effective during the budget. According to information received by Hindustan, a proposal regarding this was made in the last budget, but it has not yet taken legal form.
This is a portal in which registration of buyer and seller is necessary and as soon as a businessman gets a new order, it becomes easy to get a loan according to that amount through non-banking financial institutions i.e. NBFC. There is a provision to give loan against the order within 48 hours to the small and medium businessmen registered on this portal. In this new system, provision is to be made for loan arrangement for small businessmen with incomplete or no credit history. At present, along with NBFC, banks also hesitate in giving loan to businessmen without credit history. With the arrival of the portal, this problem is expected to be solved.
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Currently, only NBFC factors i.e. big NBFCs are allowed to give loans through the portal. The government will increase its scope by making changes in the Factoring Regulation Act in the budget session so that more and more businessmen can easily get loans on the basis of orders. Not only this, the government will make registration on the portal mandatory for all types of government purchases so that those who supply to them do not face any problem of loans.
