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Small NBFCs begin to close the door on unsecured loans
Mint Ahmedabad
|October 28, 2025
lenders and their backers, who had bet on such loans without collateral for growth.
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Unsecured loans, which are not backed by collateral, are seen as inherently riskier than, say, mortgage or vehicle loans. ISTOCKPHOTO
Kinara Capital has started the sale process for its ₹2,200-crore unsecured loan book, three people aware of the matter said.
“We remain open to different liquidity options that could further our commitment to meet our obligations towards our customers, lenders and partners,” a company spokesperson said.
Kinara, backed by British International Investment and Nuveen, faces a liquidity crunch, after some lenders appropriated fixed deposits and recalled loans, Icra said in August. Kinara in August said it had paused repayments until October as part of a resolution plan agreed with its lenders. Portfolio sale discussions are at a preliminary stage, one of the people cited above said.
Unsecured loans are seen as inherently riskier than, say, mortgage or vehicle loans. The red-hot growth in unsecured loans prompted RBI to raise risk weights on consumer credit and bank loans to NBFCs in 2023, and tighten regulations for peer-to-peer platforms over 2023 and 2024.
This story is from the October 28, 2025 edition of Mint Ahmedabad.
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