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    Home » RBI tightens default loss guarantee rule; NBFCs to exclude cover on fintech-sourced loans
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    RBI tightens default loss guarantee rule; NBFCs to exclude cover on fintech-sourced loans

    The Reserve Bank of India has instructed finance companies to exclude default loss guarantees (DLGs) from fintech firms when provisioning for stressed loans, impacting digital lending service providers. NBFCs must now make full provisions on these loans, diminishing their appeal for new business.
    May 27, 2025By QH Editorial Team
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    The Reserve Bank of India (RBI) has directed finance companies to exclude default loss guarantees (DLGs) provided by fintech firms while making provisions for stressed loans, marking a setback for independent digital lending service providers.

    Non-banking finance companies (NBFCs) will have to make full regular provisions on loans sourced from these platforms, reducing their attractiveness for new business generation, industry experts said.

    https://economictimes.indiatimes.com/industry/banking/finance/rbi-tightens-default-loss-guarantee-rule-nbfcs-to-exclude-cover-on-fintech-sourced-loans/articleshow/121420936.cms

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    • QH Editorial Team
      QH Editorial Team

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    FinTech Lending NBFC RBI Secured Lending

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