By Mr. Mathew Muthoottu, Managing Director, Muthoottu Mini Financiers Limited
“As we approach the Union Budget 2026, Muthoottu Mini Financiers Limited underscores the critical role played by Non-Banking Financial Companies (NBFCs) in meeting the financial needs of rural and semi-urban India. While regulatory measures are essential to ensure financial stability, it is equally important to recognize the challenges faced by individuals, farmers, and small enterprises in accessing traditional banking credit due to stringent requirements.
NBFCs like ours serve as a vital last-mile link by offering secured, transparent, and need-based loans for agricultural activities, MSMEs, and household requirements with speed and flexibility. From the upcoming Budget, we look forward to policy continuity that supports grassroots credit flow, regulatory stability, and a predictable cost-of-funds environment for lenders.
We strongly believe that recognizing NBFCs as key enablers of priority sector objectives and facilitating bank lending to the sector at competitive rates will empower lenders to offer affordable credit to underserved communities. Additionally, continued emphasis on governance, customer protection, and responsible digital enablement will strengthen trust in the financial system.
A pragmatic and inclusion-focused Budget can significantly enhance rural livelihoods, drive MSME growth, and reinforce the NBFC sector’s role in promoting sustainable and inclusive economic development.”