How much loss will Bajaj Finance suffer due to the ban, know who will benefit

How much loss will Bajaj Finance suffer due to the ban, know who will benefit

Bajaj Finance Trouble: The country’s largest NBFC Bajaj Finance is in trouble. Reserve Bank of India (RBI) has banned giving loans through the company’s two products eCOM and Insta EMI Card. This order of RBI has come into effect immediately. Due to this order, not only the business of the company will be affected but other NBFCs have also got a big opportunity in their hands. Let us understand what impact this decision of the Central Bank will have on the sector. 

KFS was not giving to customers 

RBI has accused the company of not following the digital lending guidelines. Bajaj Finance was not following the KFS rules. According to RBI, it is necessary to provide KFS in simple language to every customer taking digital loan. It contains information related to loan amount, loan tenure, interest rate, fees and penalty.    

What will be the impact on Bajaj 

According to market experts, this decision of RBI will definitely harm the company. In the second quarter of the current financial year, the company added more than 35 lakh new customers. Of these, 6.70 lakh are EMI card customers. 10 percent of the total customers are Insta EMI card holders. However, the company claims that it is likely to lose only 1 percent in fees and 0.5 percent in profit. The company will improve the KFS rules as soon as possible. But, market experts say that this is not only going to cause loss to Bajaj but other NBFCs also have a good opportunity to increase their market share. 

Jio ready to enter the financial market 

This action on Bajaj Finance took place at a time when Reliance Industries’ Jio Financial is ready to enter the market. Jio has a large telecom network and good capital. If this ban on Bajaj continues for a long time, then the path will be clear for Jio without any opposition. 

What will be the impact on customers 

According to the website of Bajaj Finance, the company has about 6.30 crore customers. It provides many types of loans to retail, small and medium businessmen. She also deposits money. This ban will cause huge loss to the customers taking loan on EMI.

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