Fintech firms like Zype and KreditBee are making changes to their loan offerings in response to the Reserve Bank of India’s (RBI) updated lending regulations. The RBI has increased risk weights on unsecured loans, excluding specific categories, from 100% to 125%, aiming to slow down unsecured lending growth in the next six to twelve months. Fintech companies, including Zype and KreditBee, are adjusting their strategies by incorporating more secured loans to balance their portfolios.
This shift responds to concerns raised in the RBI’s October meeting about the stability of the financial sector, particularly regarding the surge in unsecured lending. These adjustments aim to enhance financial stability and are expected to be evident in the coming months as companies adapt to the new regulatory landscape.
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