Iran war jitters put NBFC lending on edge
For now, the cracks are small. But lenders say the real risk lies ahead.
India’s shadow lenders are hitting the brakes. As the Iran war drags on, non-banking financial companies are growing wary of what comes next, not just higher funding costs, but a ripple effect across borrowers and credit quality. For now, the cracks are small. But lenders say the real risk lies ahead.
The first signs of stress are showing up among the micro, small and medium enterprises, especially those tied to fuel, exports and global trade routes. Rising shipping costs and potential fuel price hikes could squeeze margins and repayment capacity. That’s a concern for NBFCs that have aggressively expanded into small-business lending.
In response, lenders are getting choosier, tightening underwriting and slowing disbursals. Segments like vehicle finance and unsecured loans may feel the heat first, while gold loans remain a relatively safe haven.
If the conflict lingers, executives warn, the impact could snowball, turning today’s caution into a broader credit squeeze. Read more.
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Don’t let rent eat your paycheck at your first job
Your first job comes with a tough follow-up question: how much rent is too much? In India’s big cities, the old 30% rule is increasingly unrealistic as rents outpace entry-level salaries. Many young professionals now spend 35-60% of their income on housing, trading savings for convenience, shorter commutes or better living conditions.
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