RBI's decision will set a chain reaction, wherein slowing down the growth in consumption of retail loans and hence impacting profitability
FinTech BizNews Service
Mumbai, November 18, 2023: Manish Shara, Co-founder & CEO, Zet, a Fintech , reflects upon the recent RBI guidelines on consumer lending norms:
"RBI’s decision to tighten norms for consumer lending in personal loans is a welcome move to reduce risk. Our partners have already started putting stricter underwriting criteria in the last 30 days to ensure quality. However, the move taken by RBI will also see a decline in loan growth since the step has been taken to reduce excesses in the NBFC space. We have witnessed that over the past few months ticket size of loans has increased but approvals have become stricter. And now, RBI's decision will set a chain reaction, wherein slowing down the growth in consumption of retail loans and hence impacting profitability. This will take a toll on NBFC's funding cost but in the longer run this will be beneficial for the overall health of the industry."
