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Bajaj Finance to launch new term-loan variants from Nov 1 as RBI weighs revolving credit ban

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Bajaj Finance to launch new term-loan variants from Nov 1 as RBI weighs revolving credit ban

Bajaj Finance to launch new term-loan variants from Nov 1 as RBI weighs revolving credit ban

Since the RBI proposed a ban on revolving credit by NBFCs in its August 6 draft circular, Bajaj Finance, with an estimated 15 per cent of consolidated AUM in such products, is preparing new term-loan variants from November 1. A complete ban would have a transient impact on AUM and marginally compress NIM and profitability, Vice Chairman & MD Rajeev Jain said.

Bajaj Finance will launch new term-loan variants from November 1 that will not allow withdrawals after repayment but will carry additional features

MD Rajeev Jain said a complete ban on revolving credit could have a transient impact on AUM and marginally compress NIM and profitability

RBI’s draft allows NBFCs authorised to issue credit cards to continue offering revolving credit through those products

IIFL Capital estimates revolving-credit exposure at around 15 per cent of Bajaj Finance’s consolidated AUM and 20 per cent on a standalone basis

Largest non bank lender Bajaj Finance is preparing to launch a set of new term loan variants from November 1 as the Reserve Bank of India weighs restrictions on revolving credit products offered by non-bank financial companies (NBFCs). The new variants will not allow customers to withdraw funds after repayment, but will carry additional features, as the lender looks to structure products within the term-loan framework proposed by the RBI. During Bajaj Finance’s Q2 FY27 earnings call, Managing Director Rajeev Jain said the company had submitted its comments on the draft and was awaiting the final framework.


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