UNSECURED LOAN CONCERNS Fintechs explore long-term loans after RBI alert

The Reserve Bank of Ind recent decision to increase weighting on unsecured pers loans has served as a yellow signal for fintech companies offering products such as "buy now, pay later" (BNPL), and postpaid or unsecured small ticket personal loans (STPL).

- AJINKYA KAWALE

Fintech players Business Standard spoke to said growth for unsecured personal loans might moderate and not move into the red.

Firms giving loans of more than ₹50,000 may register growth as against small-ticket size and small-tenure loans.

"There will be an upward movement of ticket size for high credit worthy customers.

Further, as against offering short-term loans, say, of less than three months, there will be a propensity for lenders to offer longer-term loans if the customer has the capability to repay," said Ranvir Singh, founder and chief executive officer at RING, a fintech firm.