FLDG: A Change in the Credit Check Process

The FLDG Circular is out and everyone will have to play ball. The FinTechs can now guarantee up to 50 lakh rupees of losses on these loans. This might mean the NBFCs and banks could pay a bit more attention To the credit quality of customers that FinTechs source. If a borrower defaults, it'll still have to classify it as a non-performing asset or an NPA.