Budget 2026: Lenders Urge Uniform SARFAESI Rules for Rural Housing Credit Boost

• Lenders advocate for harmonized SARFAESI Act rules to enhance rural housing finance ahead of Budget 2026.
• Inconsistent SARFAESI enforcement across states deters banks from lending in rural areas, increasing risks and slowing loan recovery.
• Muthoot FinCorp CEO Shaji Varghese suggests liberalizing branch-opening norms for gold loan NBFCs and rationalizing capital risk weights to boost rural credit.
• Harmonizing SARFAESI applicability for NBFCs with banks and HFCs is crucial for strengthening recovery mechanisms for smaller mortgage loans.
• Godrej Capital MD & CEO Manish Shah emphasizes deepening domestic liquidity and strengthening risk-sharing frameworks to lower borrowing costs and support inclusive growth.

Why It Matters: Uniform SARFAESI rules are crucial for boosting rural housing credit, improving recovery, and fostering inclusive financial growth.