Movable Assets Based Lending (MABL)

Movable Assets Based Lending (MABL)

Project Title: Design and delivery of comprehensive training program for Indian financial sector on Movable Assets Based Lending (MABL).

Problem: Banks and Financial Institutions in India are reluctant to finance movable assets without obtaining additional collateral. This prevents (especially the MSMEs) from getting adequate bank finance. ‘World Bank’ would like to encourage banks and NBFC’s to lend against movable assets without insisting upon collateral.

Solution: This project was undertaken in collaboration with ‘Commercial Finance Association’, an US based international consulting firm that has successful track record of implementing such trainings in a large number of countries. MABL is primarily undertaken through structured lending products, which enable better control over primary security and borrower’s cash flows. These techniques enable banks to waive the requirement of additional collateral without exposing themselves to extra risk.

Client: World Bank Group
Year: 2016 and 2017