RBI's draft curbs on revolving credit may impact NBFC flexi loans: Morgan Stanley
The Reserve Bank of India has proposed new directions that could limit the availability of revolving credit facilities for NBFCs. This change might notably affect flexi and overdraft loan offerings, leading to potential adjustments in products to comply with regulations. If borrowers are transitioned to term loans, they may encounter increased borrowing expenses. Nonetheless, the sector could ease the transition through industry-wide implementation and by grandfathering existing facilities.
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