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NCL Research to expand into India’s digital personal loan market
The company’s board approved creating a wholly owned subsidiary to build fintech software and technology for the lending platform, subject to regulatory approvals.
Shares of NCL Research & Financial Services pared some of their intraday losses on Wednesday, July 29, after the company disclosed plans to enter India’s digital personal loan business in a stock exchange filing, according to LiveMint Markets.
The filing said NCL Research’s board approved the strategic expansion into personal lending, subject to applicable regulatory approvals and completion of required statutory and corporate formalities. The planned initial focus includes digital personal loans, salary-based loans, loans for self-employed professionals, consumer finance solutions, and other permissible retail lending products.
The company also approved incorporating a wholly owned subsidiary to develop fintech software and technology solutions to support the lending business, again subject to regulatory approvals. It said it would use technology-driven underwriting, digital onboarding, data analytics, and risk management systems to build a scalable lending platform while maintaining prudent credit standards.
NCL Research said the initiative is intended to diversify revenue streams, generate recurring interest income, improve long-term returns on capital, and create a fintech-led lending platform, noting India’s retail credit market is expected to grow with increasing digital adoption and financial inclusion. The board additionally approved amendments to the company’s Main Object Clause, and authorized key management to complete regulatory filings and take other steps needed for implementation, while stating the operations would comply with applicable laws including Reserve Bank of India regulations where relevant.