Fintech firms feel heat of IL&FS default with lower funds for disbursals

The Infrastructure Leasing & Financial Services (IL&FS) crisis is likely to impact fresh disbursements by financial technology (fintech) companies heavily dependent on non-banking financial companies (NBFCs) for sourcing of funds.

In the aftermath of the IL&FS crisis, NBFCs and banks are tightening the underwriting norms for sanction of advances to fintech companies.

“It is now evident that the ripples of the NBFC crisis are hitting India’s lending ecosystem. Many NBFCs have re-evaluated or are in the process of re-evaluating their lending course of action. It is reflecting through slower pace of disbursal across segments such as retail lending, car loans,