Overview
On 26 August 2026, the Reserve Bank of India (RBI) released draft regulations that would restrict the use of revolving credit facilities for most non‑bank financial companies (NBFCs). Under the proposed framework, NBFCs would be required to structure credit products as term‑loan style facilities, meaning that repayment of principal would not automatically restore the available borrowing limit. The change targets products that currently rely on draw‑down, repayment and redraw mechanisms, compelling lenders to redesign product structures and underlying technology.
SwiffyLabs Platform Capability
SwiffyLabs states that its Lending Platform is already equipped to support the non‑revolving credit‑line construct envisioned by the RBI. The platform allows multiple drawdowns within an approved sanction while ensuring that any principal repaid does not replenish the sanctioned amount. This architecture provides a technology‑led pathway for NBFCs to transition existing products to a term‑loan construct without fundamentally redesigning customer journeys. The capability is highlighted as particularly relevant for Loan Against Securities (LAS) and other credit‑line offerings that traditionally depend on flexible drawdown and repayment features.
Executive Commentary
"Regulatory changes of this nature require lenders to rethink not just their product structures, but also the underlying technology that manages those products," said Vivek Sinha, Vice‑President Products at SwiffyLabs. He added that SwiffyLabs aims to deliver a platform that gives financial institutions the 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.
Implications for NBFCs
The RBI’s proposed framework is expected to prompt NBFCs to evaluate their existing credit products, technology architecture, and operational processes. For lenders with significant exposure to revolving or flexible credit products, the ability to transition to compliant structures without extensive technology redevelopment could become a critical consideration.
About SwiffyLabs
SwiffyLabs describes itself as a next‑generation technology platform for the BFSI sector, offering an integrated suite comprising Lending, Payments, and SwiffyLabs Studios. The Lending platform provides a modular stack covering loan origination, loan management, collateral management, risk workflows, servicing, and digital product journeys across multiple credit products. The Payments platform enables institutions to build and manage digital payment products and transaction workflows. SwiffyLabs Studios delivers configurable, plug‑and‑play components that address operational challenges such as reconciliation and automation, eliminating the need for large‑scale technology redevelopment. Built on a modular, API‑first architecture, the platform allows institutions to configure products faster, integrate with existing ecosystems, and adapt to evolving regulatory and business requirements with greater speed, flexibility, and cost efficiency.