RBI draft pushes Bajaj Finance, Tata Capital toward term loans
Big changes are coming for how nonbank financial companies (NBFCs) lend money in India.
With the Reserve Bank of India (RBI) planning to limit revolving credit options, players like Bajaj Finance and Tata Capital are moving toward term loans (basically, loans with fixed repayment schedules) to keep business steady.
Bajaj Finance just rolled out new loan types, while Tata Capital is tweaking its flexible loan offerings to fit the upcoming rules.
RBI draft limits NBFC revolving credit
The RBI's August draft says NBFCs, except authorized credit card issuers, need to offer only term loans with set repayments.
These rules are proposed, so companies are updating their products now to stay compliant and avoid disruption.
The focus is on staying resilient and making sure customers still have borrowing options, even if those options look a bit different going forward.