Indian central bank’s consumer loan restrictions to affect startups

  • The Reserve Bank of India (RBI) has implemented measures to slow down high consumer credit growth, affecting consumer spending and startups.
  • The RBI has increased risk weights on unsecured personal loans, credit card, and consumer durable loans by 25% points to 125%, excluding mortgages, vehicle and education loans, and debt backed by gold.
  • The tightening will impact startups that rely on non-banking financial companies (NBFCs) for loans, potentially increasing their cost of capital and reducing growth.


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