RBI tightening on unsecured loans: White goods firms fear margin squeeze

While the consumer won't bear the brunt of the RBI's move, companies still await clarity but expect their margins to take some hit

PLI, Product-linked scheme, electronics, manufactuing, consumer durables, air conditioners, white goods, led lights

Sharleen Dsouza Mumbai

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Consumer durables retailers and manufacturers may end up bearing the cost of the Reserve Bank of India’s (RBI’s) tightening on easy personal loans, as their margins are expected to be impacted by higher borrowing costs.
During the recently passed festival season, consumer durables companies started offering longer tenure loans, zero down payments, and zero interest on a wider assortment of products than ever before, making the products more affordable.
While 18- and 24-month easy monthly instalment (EMI) options were available earlier, companies offered them only on select products; now, they are being extended to a larger section of products. While the consumer won’t bear the brunt of the RBI’s move, companies still await clarity but expect their margins to take

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First Published: Nov 20 2023 | 8:18 PM IST

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