Tata Capital’s exposure to revolving credit is less than 5% of its loan book, Managing Director and Chief Executive Rajiv Sabharwal said on Tuesday.
“It (share of such loans in total loan book) will be below 5%, it will be less, it’s not a big percentage. It’s more about a comprehensive product suite, nothing else,” said Sabharwal on the sidelines of the FIBAC Conference 2026. He said the company would give a feedback on the draft and then comply with the final guidelines. It was too early to assess the final impact of the proposed regulations, Sabharwal said.
Last week, the RBI proposed barring NBFCs from offering revolving credit products, unless they are authorised to issue credit cards.
Separately, L&T Finance MD & CEO Sudipta Roy said the company does not have a significant exposure to revolving credit products and are still evaluating the draft guidelines.
A revolving credit facility is a flexible loan that allows one to draw funds up to an approved limit, repay them, and then re-borrow as needed, with the limit getting replenished each time one makes a repayment.
According to a report by Kotak Institutional Equities, NBFCs offer flexi/revolving credit facilities to borrowers, mostly to MSME loan customers, as secured, loan-against-property, unsecured, supply chain and working capital loans. This is also extended as personal and professional loans by some players.