credit schemes: Brands' margins may take a hit if higher risk weight raises borrowing costs
Longer-tenure EMIs, buyback guarantees, and other sweeteners are driving sales of automobiles, consumer durable, and electronic goods in India. The Reserve Bank of India has increased the risk weight on consumer credit, including credit card receivables and bank loans to NBFCs by a fourth, potentially forcing banks and non-banks to set aside more capital, which can potentially increase lending rates.
Source: indiatimes.com
