Overview
- Indian banks and non-bank lenders have asked their fintech partners to limit issuing small personal loans, following a clampdown by the Reserve Bank of India (RBI) due to concerns over soaring demand and higher risk.
- Paytm, a leading digital payments firm, announced plans to slow down on loans under 50,000 rupees (about $600), marking the first such move since the RBI's directive.
- The decision is not expected to sever ties with fintech partners, but will impact the availability of small personal loans in the market.
- Paytm's stock price fell by 20% following the announcement, also affecting Aditya Birla Capital, a key lending partner.
- Industry estimates suggest that overall loan growth will moderate to 12%-14%, down from above 15%.