iconiifl-logo-icon 1

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

  • Open Demat with exclusive Advice & Services
  • Get a dedicated Relationship Manager to help you grow your wealth
  • Exclusive advisory on 20+ trading & wealth-based investment options
  • One tap Investments, Automated trading & much more
  • Minimum 1 lakh margin required
sidebar image

Paytm will reduce low-cost personal loans following a clampdown by RBI

7 Dec 2023 , 11:55 AM

Fewer sub-50,000-rupee personal loans would be granted by India's Paytm, the digital payments company announced on Wednesday. This comes weeks after the central bank tightened regulations on consumer lending in response to a spike in demand.

Expecting 'good demand' for loans of more than 50,000 rupees, the non-bank lender announced that it will broaden its portfolio of higher-ticket personal and commercial loans to lower-risk and highly credit-worthy consumers.

This follows a recent increase in the capital requirements for banks and non-bank lenders to cover potential defaults when granting personal loans by the Reserve Bank of India.

India's banking regulator, the RBI, strengthened its regulations in response to a spike in small-ticket loans, especially those under 50,000 rupees, and a rise in delinquencies.

In a call with investors, Paytm's president and COO, Bhavesh Gupta, stated that the business is becoming 'ultra conservative' in this area.

'On the back of recent macro development and regulatory guidance, in consultation with our lending partners, we have decided to reduce less than 50,000 (rupees) loan distribution,' Gupta stated.

He predicted that this would have little effect on revenue growth but would result in a near 40%–50% decrease in the number of loans Paytm issues through its post-paid offering.

According to Paytm, post-paid loans made up roughly 56% of all loans during the July–September quarter.

In example, loans under 50,000 rupees make up roughly 38% of all loans on Paytm, according to financial expert Rahul Jain of Dolat Capital who talked to Reuters.

As of right now, seven non-bank finance companies (NBFCs) are lending partners of Paytm, which is most recognised for its namesake digital payments app.

It stated that it intends to bring on two NBFC partners and one banks.

For feedback and suggestions, write to us at editorial@iifl.com


Related Tags

  • Paytm
  • Personal Loan
  • RBI
sidebar mobile


Read More

Most Read News

4 Mar 2024   |   09:10 AM
4 Mar 2024   |   06:22 PM
4 Mar 2024   |   08:40 AM
4 Mar 2024   |   06:37 PM
Read More
Knowledge Centerplus

Logo IIFL Customer Care Number
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

Knowledge Centerplus

Follow us on


2024, IIFL Securities Ltd. All Rights Reserved

  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.