NBFC-fintech lenders have the highest share in sanctioned and outstanding amounts in under INR 50K loan category and the second-highest delinquency levels, the RBI said
Noting that unsecured lending requires close monitoring, the RBI said over half of the borrowers in personal loans category have three live loans at the time of origination
However, the RBI noted that its decision to increase the risk weight for certain segments of consumer credit last year has brought down the growth rate for consumer credit
The Reserve Bank of India has flagged the high levels of delinquency being seen by fintech lenders for small loans below INR 50,000.
In its Financial Stability Report, the central bank said that its decision to increase the risk weight for certain segments of consumer credit, which came as a major blow to several fintech players in the digital lending space, including Paytm, reduced the growth rate in overall consumer credit.