First Loss Default Guarantee: Settling the Disquiet in the Fintech Sector
The Reserve Bank of India (“RBI”) issued Guidelines on Default Loss Guarantee in Digital Lending on 8th June 2023, to give a green signal to Default Loss Guarantee or First Loss Default Guarantee (“FLDG”) arrangements between Banks or Non-Banking Financial Companies (“Regulated Entities” or “RE”) and Lending Service Providers (“LSPs”) (typically a Fintech entity). This … Continue reading First Loss Default Guarantee: Settling the Disquiet in the Fintech Sector
Read more »RBI’s stance on Digital lending : A New Prospect for Borrowings in India?
Introduction For day to day financial operations, digital banking has recently evolved into a new market in India. The process is simpler in terms of formalities and procedures which have to be completed in order to obtain a loan from a base branch of Bank. With this novel method of developing and offering credit to borrowers, some challenges have emerged … Continue reading RBI’s stance on Digital lending : A New Prospect for Borrowings in India?
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