Paytm to cut down small-ticket loans after RBI risk-weight directive
Paytm to cut down small-ticket loans after RBI risk-weight directive
By: Pune Pulse
December 7, 2023
Pune: One97, the company behind the Paytm brand, informed investors on Wednesday about its substantial reduction in postpaid loans and small-ticket personal loans below Rs 50,000. In contrast, the company plans to expand the availability of larger-ticket personal loans and business loans.
The company stated that it has adjusted its portfolio origination strategy for loans below Rs 50,000, particularly for the postpaid loan product. This decision was made after considering recent macro-developments, regulatory guidance and discussions with lending partners.
The company’s main objective is to maintain a healthy portfolio, and as a result, the postpaid loan product will now have a reduced presence in its loan distribution business moving forward.
As per the information provided, lenders are facing higher costs for small-ticket personal loans due to the recent 25% increase in capital requirements by the RBI. The impact of this change is primarily felt in the sub-Rs 50,000 segment.
