Bajaj Finance will introduce new term-loan variants starting November 1 that will not permit withdrawals after repayment, as the Reserve Bank of India considers restrictions on revolving credit products offered by non-bank financial companies (NBFCs). The lender aims to align these products with the RBI’s proposed term-loan framework while maintaining customer-centric features, according to the company’s Managing Director Rajeev Jain.
During Bajaj Finance’s Q2 FY27 earnings call, Rajeev Jain confirmed the company has submitted comments on the RBI’s draft guidelines and is awaiting the final framework. He expressed hope that the RBI would strike a balance that supports sustainability, protects customers, and fosters innovation for NBFCs. The new term-loan variants are designed to comply with the draft while offering additional features to customers.
The RBI’s draft guidelines allow NBFCs authorised to issue credit cards to continue offering revolving credit through those products, but may restrict other revolving credit facilities. IIFL Capital estimates that revolving-credit exposure accounts for about 15% of Bajaj Finance’s consolidated assets under management (AUM) and 20% on a standalone basis. Bajaj Finance is India’s largest non-bank lender and reported a 26% growth in AUM to ₹5.85 lakh crore in Q2 FY27, highlighting the significance of these products to its portfolio.
Bajaj Finance’s Q2 FY27 results showed a 29% year-on-year rise in consolidated profit after tax to ₹6,367 crore, with net interest income increasing 24% to ₹13,335 crore. The company added 13.45 million new loans and expanded its customer base by 4.42 million during the quarter, reaching 128.85 million customers, according to livemint.com.