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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The central bank’s recent order to raise risk weightage for unsecured consumer loans has pushed leading fintech lenders to rethink core business strategies and look for funds.
India’s fledgling digital lending ecosystem is witnessing a reset.
The trigger? In November last year, the central bank ordered all financial institutions to increase risk weights—capital needed to be set aside for loans disbursed—on unsecured personal loans by 25%.
As a result, top fintech lenders Navi Finserv, Axio and KrazyBee, among others—which built their businesses around swift allocation of small-ticket loans—are staring at an uncertain future. To limit the damage, they are rethinking their strategies, desperately looking for a variety of avenues to raise funds and planning new products in the secured credit market instead.
Large NBFCs like …
Lenders stand to gain a lot more than borrowers in the current challenging market environment
The loan aggregator keeps sending updates on WhatsApp even to users who haven’t applied for a loan. The company is exploiting a grey area in India’s telecom regulatory framework and WhatsApp’s policies.
Billionaire Mohamed Alabbar goes for the Indian Ocean archipelago, India’s PhonePe gets UAE approval, and other updates from the week.
