First Loss Default Guarantee (FLDG)

The credit market in India is growing. With the launch of OCEN and regulatory authorities striding towards building a robust ecosystem with better governance and scope of innovation, as Investors and Entrepreneurs we can look forward to interesting times. Below we unwrap the recent regulatory development on FLDG.

Author(s):
Karan Gupta & Yashvi Gupta

Sources:

· https://blog.setu.co/articles/what-on-earth-is-an-fldg

· https://yourstory.com/2023/06/fldg-explained-new-rules-changes-impact-borrowers-fintechs-banks

· https://www.livemint.com/companies/news/rbi-gives-green-signal-to-first-loss-default-guarantee-fldg-framework-heres-how-will-fintech-banks-nbfcs-benefit-11686244184070.html

· https://www.financialexpress.com/industry/banking-finance/explainer-the-rbis-fldg-fillip-to-borrowing/3120654/

· https://www.financialexpress.com/industry/banking-finance/rbi-permits-fldg-between-fintechs-banks-nbfcs/3119025/

· https://timesofindia.indiatimes.com/blogs/kembai-speaks/fldg-a-game-changer-to-push-digital-lending/