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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 :')

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noncorporate

Stealth

10 months ago

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.
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noncorporate

Stealth

10 months ago

Read Write* instead of Right in the 4 from end
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LetsGetLaidOff

Paytm

10 months ago

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
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Corpdaaku

Student

10 months ago

Which company?
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LetsGetLaidOff

Paytm

10 months ago

________ par 100/- prapt huye
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noncorporate

Stealth

10 months ago

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

Paytm

10 months ago

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
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LetsGetLaidOff

Paytm

10 months ago

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
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majboormajdoor

Stealth

10 months ago

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.
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UpsetUnicorn

Stealth

10 months ago

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

Paytm

10 months ago

This time the mandate is directly against the number of loans that are being disbursed. Hence, lending biz is affected
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Qwerty2398

Stealth

10 months ago

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

Healthy

10 months ago

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.
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LetsGetLaidOff

Paytm

10 months ago

I hope that's how it turns out to be
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Murky

Healthy

10 months ago

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

Infosys

10 months ago

Gosh.
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DiwaliBonus

Zomato

9 months ago

2 weeks later, Paytm is hit, stock down 20% at open.
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LetsGetLaidOff

Paytm

8 months ago

Yeah told these mfs in the comment but everyone was telling me to cAlM d0wN
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DiwaliBonus

Zomato

8 months ago

Literally an insider is giving info that something fucked up and people are not believing it. Lol.
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noncorporate

Stealth

9 months ago

& share tanks 18%
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DixonButts

Stealth

10 months ago

I think this circular is indicative of the end of any new startups thinking of building businesses off of unsecured credit products. Firms like PayTM, OneCard, CRED have already built a large distribution/presence. NBFCs will continue partnering with them. New players who do not have such a big reach will struggle to partner with reputed NBFCs/Lenders and their business will suffer. No wonder most new-age lending fintechs are moving into the supply chain/B2B finance space. Loads of possible innovation is possible here with OCEN. However, as per my knowledge most small sole proprietors/micro enterprises used to depend on personal loans to fund their businesses. These small firms do not have their own credit score and the proprietors personal credit score used to be used to underwrite personal loans instead. So unsure how this will be solved.
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Spicymango9867

Capri Global Capital Limited

10 months ago

Beta...apke jo traditional companies hai jinke pass capital power hai...unke volumes kuch hazar crs sei girege khali...gand fategi..to vo hai apke new age nbfc and fintechs...jo jab dekho personal loan baatnte firte hai...ahem aheeem cred, Paytm, indmoney etc etc
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Kkkkkk

Student

10 months ago

So does it affect the neo bank startups giving loans
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BareActivity

Microsoft

10 months ago

They changed the unsecured loan ratio from 100 to 125 % so if a bank is lending 100bucks as unsecured , 125 would be counted as capital at risk and based on liquid ratio a percentage of this amount would sit in rbi lockers.. read finshot has agreat ecplainer how nbfc n other will be impacted
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LetsGetLaidOff

Paytm

10 months ago

Yeah I linked its article somewhere in the comments section
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BareActivity

Microsoft

10 months ago

Paytm is getting screwed as well
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LetsGetLaidOff

Paytm

10 months ago

https://bit.ly/3unbPbs - article for reference
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Curated from across

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by SilverDamage

IT World

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by LFW

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That’s a dumb thing to write!

Should we also compare NPAs? Should we also compare loan book size? Should we also compare amount of time in the industry? I mean we know business is growing, but give folks a better reason to join. Be like stripe- to increase the gdp of the internet

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by GooglingInJob

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Hearing a lot of Layoffs lately

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by ConcurrentThinker

Stealth

How safe is it to work in a fintech when RBI/govt goes on banning spree

https://m.economictimes.com/tech/technology/non-chinese-lending-apps-including-payus-lazypay-kissht-blocked-on-meitys-order/articleshow/97656552.cms