RBI Draft Regulation on Credit Structures
The Reserve Bank of India has issued a draft regulation that would restrict revolving credit facilities for most non‑banking financial companies (NBFCs). Under the proposed framework, NBFCs would be required to offer credit products in the form of term loans rather than revolving facilities where repayment automatically restores the borrowing limit. This shift is expected to affect loan products that rely on draw‑down, repayment and redraw mechanisms, prompting lenders to reassess product structures, technology architecture, and operational processes.
SwiffyLabs’ Ready‑Made Solution
SwiffyLabs announced that its Lending Platform already supports the non‑revolving credit‑line construct envisioned by the RBI draft. The platform enables multiple drawdowns within an approved sanction while ensuring that principal once repaid does not replenish the sanctioned amount. This capability allows NBFCs to retain operational flexibility without redesigning customer journeys. The platform is particularly suited to products such as Loan Against Securities (LAS) and other credit‑line offerings that traditionally depend on flexible draw‑down and repayment features.
Executive Commentary
Vivek Sinha, Vice‑President of Products at SwiffyLabs, stated that regulatory changes of this nature require lenders to rethink both product structures and the underlying technology. He emphasized that SwiffyLabs’ objective is to provide a lending platform that offers flexibility to launch and adapt credit products while maintaining strong regulatory alignment, citing the non‑revolving construct as an example of technology enabling compliance without compromising customer experience.
About SwiffyLabs
SwiffyLabs is a next‑generation technology platform serving the BFSI sector. Its modular, API‑first architecture spans loan origination, loan management, collateral management, risk workflows, servicing, and digital product journeys across multiple credit products. The broader suite includes a Payments platform for digital payment products and SwiffyLabs Studios, which offers configurable plug‑and‑play components to address specific operational challenges such as reconciliation and automation, reducing the need for large‑scale technology redevelopment. More information is available at www.swiffylabs.com.
Media Contact
Ajita Chakladar, Email: sales@swiffylabs.com