SwirlyTaco

Brace for impact people in lending biz!!!

After the recent RBI mandate to banks and NBFCs against unsecured personal loans, the lenders have pulled back their hands from digital lending. My company has already started facing the impact. Tomorrow onwards we won't be able to disburse any new loans from our platform because the lender is unsure of the road ahead.

Personally, I can't afford to go through another layoff this year :')

13mo ago

Find out if you are being paid fairly.Download Grapevine

PrancingWaffle

Stealth13mo

Okay . Stop reading from headlines. RBI ,just like it does with monetary policy, has pulled some strings, which is going to make the unsecured lending difficult for banks. They now have to deposit more amount to the rbi than earlier to give away the loan. Loans are unsecured for customers, but in the treasury, they are backed up by cash. RBI doesn't flat out ban things. (Other than cur notes ;-) ). These are ratios, i am not gonna right here because you should have known ,its your job. Don't be the reason ppl think PM role is unnecessary.

PrancingWaffle

Stealth13mo

Read Write* instead of Right in the 4 from end

SwirlyTaco

PayTM13mo

Brotha, each lender has only a limited amount of capital. Now if the lender has to put some extra capital aside as security, that means they can give out fewer loans hence a drop in their biz volumes

BouncyQuokka

EXL13mo

Which company?

SwirlyTaco

PayTM13mo

________ par 100/- prapt huye

PrancingWaffle

Stealth13mo

The one which started it or the one which has copied it

DancingPickle

PayTM13mo

Stop spreading fud , do you even know how much impact it would have. Rbi has just increased the % , if a user which was getting the loan at 9% , now they ll get it at 9.50%. And the company you are telling doesn’t have just one lender

SwirlyTaco

PayTM13mo

Yes exactly. Hike in interest rate -> drop in number of people who sign up for loans. Though right now there's no clarity on by how much will each lender hike the interest rates

ZoomyMuffin

Stealth13mo

In Personal loans, interest rate doesn't have much sensitivity. Amounts and tenures are less so cost doesn't increase as much as we think.

People who are sensitive to rates usually don't borrow from NBFC's. Others who are completely insensitive are your target segment.

BouncyQuokka

Stealth13mo

Nah. RBI changing rules is quite common.. does it all the time and fintechs have to keep adapting..

SwirlyTaco

PayTM13mo

This time the mandate is directly against the number of loans that are being disbursed. Hence, lending biz is affected

CosmicLlama

Stealth13mo

This is not the first time rbi is abruptly changing rules. Most nbfc will make "adjustment". Window dressing is very common.

ZoomyBoba

Stealth13mo

The impact on fintechs is hugely overblown IMHO. RBI action will increase the rates by a few bps. This segment has very high NIMs and most fintechs have a target group for whom 0.5% higher ROI won't make too much of an impact - it's not that these borrowers have a myriad of options. As with all RBI circular, this will cause some initial panic knee jerk reactions which will settle in less than a month's time.

SwirlyTaco

PayTM13mo

I hope that's how it turns out to be

ZoomyBoba

Stealth13mo

Have faith! There have been too many of these RBI led cycles by now.

Discover more

Curated from across

Ask a question on Grapevine.

Get the app on Android or iOS.

Privacy Terms

Guidelines Help