Loan book, interest rate data sought from NBFCs
The Reserve Bank has sought product-wise details of the loan book from selected non-banking finance companies (NBFCs). They have also been asked to provide information about the annual interest rate being charged on these. NBFCs will have to provide information about interest rates in 6 slabs - less than 10%, 10-20%, 20-30%, 30-40%, 40-50% and more than 50%.
According to officials, RBI wants to know whether the growth in different loan categories is manageable as per the rules so that a credit bubble situation does not arise. In November last year, the banking regulator had asked regulated entities (REs) to implement its board-approved limits by February 29, 2024 to reduce their exposure to consumer loans. It had raised concerns in its June 2024 Financial Stability Report. Default cases are high among borrowers with loans less than Rs 50,000.
According to officials, RBI wants to know whether the growth in different loan categories is manageable as per the rules so that a credit bubble situation does not arise. In November last year, the banking regulator had asked regulated entities (REs) to implement its board-approved limits by February 29, 2024 to reduce their exposure to consumer loans. It had raised concerns in its June 2024 Financial Stability Report. Default cases are high among borrowers with loans less than Rs 50,000.