New Delhi: The Reserve Bank of India's (RBI) proposed restrictions on revolving credit facilities offered by non-banking financial companies (NBFCs) may increase operational challenges for lenders, reduce their returns and raise costs for borrowers, Kotak Institutional Equities said in a report.
The brokerage expects NBFCs to gradually shift from flexi/revolving credit facilities to bullet-repayment loans following the RBI's proposal to allow only term loans with fixed repayment schedules.
