Insights from the select leaders form the NBFC sector
FinTech BizNews Service
Mumbai, June 6, 2025: The Monetary Policy Committee (MPC) held its 55th meeting from June 4 to 6, 2025 under the chairmanship of Shri Sanjay Malhotra, Governor, Reserve Bank of India. After assessing the current and evolving macroeconomic situation, the MPC voted to reduce the policy repo rate by 50 basis points (bps) to 5.50 per cent with immediate effect.
Following are useful insights from the select leaders form the NBFC sector, including lending platforms:
Rajendra Kumar Setia, MD & CEO, SK Finance:
The policy reflects a well calibrated move to strengthen domestic growth amidst India’s developmental journey. The RBI’s decision to further reduce the repo rate by 50 bps to 5.5% in its second monetary policy of FY25-26 underscores its proactive approach to sustain and further accelerate economic momentum amidst evolving global dynamics.
The announcement not only reflects confidence in India’s macroeconomic fundamentals but also acts as a catalyst for accelerating investments and improving consumption, which are key pillars of the economy. This forward-looking policy reinforces the momentum towards a more inclusive and resilient economic growth.
As a finance company, we welcome this move in as a positive signal that will enhance liquidity, improve credit offtake, and foster greater confidence among borrowers and investors alike.
John Muthoot, Chairman & Managing Director of Muthoot FinCorp:
“The RBI’s monetary policy announcement is a timely and prudent step toward supporting inclusive growth. The reduction in the repo rate and CRR will not only ease the cost of funds but also unlock greater liquidity across the system. At Muthoot FinCorp Ltd., this enables us to extend more affordable and accessible credit solutions to underserved households, first-time borrowers, and micro-entrepreneurs — the real drivers of India’s informal economy. These forward-looking measures align closely with our purpose of transforming the life of the common man by improving their financial well-being. We are confident that such policy support will accelerate demand, enhance financial inclusion, and drive sustainable, broad-based growth across sectors.”
Pallavi Shrivastava, Co-Founder, Progcap
“This 50 bps rate cut may sound technical, but for India’s real economy, especially last-mile borrowers and MSMEs - it’s a meaningful unlock. A third repo cut in the last two quarters signals a clear policy intent to revive credit flow and energise growth where it’s needed most. While the impact won’t be automatic, it sets the stage for more accessible, productive credit. For fintechs like Progcap, this is a chance to deepen delivery, design better risk models, and build systems that honour both macro signals and ground realities.”
Raja Debnath, Chairperson, Co-Founder & CEO at Veefin Group
“The RBI’s repo rate and CRR cuts will help further bridge the credit gap across MSMEs. There is likely to be increased credit demand from MSMEs, especially in sectors where delays in receivables are a major bottleneck.
This is the right environment for financial institutions to double down on digitising their lending operations. At Veefin, we see growing momentum among lenders to use tech to reach deeper, onboard faster, and underwrite smarter. The regulatory signal is clear - credit needs to flow deeper, quicker, and with more precision. Digital platforms will be at the heart of making that happen.”
Rishi Anand, MD & CEO, Aadhar Housing Finance:
"The RBI’s decision to reduce the repo rate by 50 basis points bringing it down to 5.5% after two earlier cuts of 25 bps each this year goes beyond industry expectations. A cumulative 100 bps reduction through three consecutive MPC meetings in 2025 is a strong signal to support economic recovery amid ongoing global trade pressures. This move eases liquidity and enables lenders to offer more affordable credit. For the affordable housing sector, it’s a timely boost as lower EMIs will improve home loan accessibility, especially for EWS and LIG customers. Even a 1% drop-in interest rates can reduce financial burden meaningfully for families at the bottom of the pyramid. Importantly, this low-interest environment works in synergy with government schemes like PMAY, SWAMIH Fund 2.0, and tax benefits for first-time buyers, amplifying their impact. Together, these steps will help more people move closer to fulfilling their aspiration of owning a home."
Dr. HP Singh, CMD, Satin Creditcare Network:
"RBI’s move to reduce Repo Rate by 50 bps sends a strong signal of the regulator’s confidence on the overall sound macroeconomics of India. With inflation under control, this move will translate into meaningful cost benefits for the end-consumers. We believe, a 100 bps cumulative rate cut in 2025 so far, will set the momentum for a recovery in rural demand and enhance credit affordability for our rural borrowers. At Satin Group, we serve Bharat with over 33 lakh clients across 529 districts. We’re not just disbursing microloans; we’re unlocking access to MSME finance, affordable housing as well. This accommodative stance from the RBI aligns with our broader commitment of expanding credit responsibly across the rural economy and thereby contributing to the vision of Viksit Bharat."
Vivek Singh, CEO, Home Credit India:
The RBI’s Monetary Policy Committee has delivered a decisive, growth-oriented policy. We applaud the repo rate reduction by 50 basis points to 5.5%, signalling a strong push for economic activity. India’s economic strength, stable inflation outlook, and improving consumption trends provide ample opportunity to accelerate consumer consumption and retail credit. As a responsible lender, Home Credit India welcomes these measures, enabling us to offer more affordable and inclusive financing, especially to mass and aspiring middle-income households. We deeply appreciate the RBI's focus on financial stability, noting improved asset quality across the system, including NBFCs. The recognition of abating stress in unsecured personal loans and ongoing recalibration efforts reinforces our commitment to robust underwriting and collection practices, supporting a healthier credit environment and India's growth.
George Alexander Muthoot, Managing Director, Muthoot Finance:
“The Reserve Bank of India’s decision to cut the repo rate by 50 basis points to 5.50% reflects a decisive intent to boost economic momentum and improve systemic liquidity. While the immediate impact can be seen in softening of lending rates and improved access to credit, the larger opportunity lies in translating this into long-term financial inclusion and demand-led recovery.
For NBFCs, this is an encouraging move as it creates a favourable environment by lowering borrowing costs and extending affordable credit to underserved communities. The move, coupled with a lowered inflation outlook, is likely to support domestic consumption and stimulate credit demand, in the coming quarters. Overall, we view this as a timely and positive intervention that can support a stronger credit cycle in FY26.”
Pushkar Mukewar, Co-Founder and CEO, Drip Capital:
"RBI’s third consecutive rate cut reinforces its commitment to supporting growth and improving credit access. Lower borrowing costs will not only enhance working capital availability for small businesses but also help reduce manufacturing costs. This, in turn, will strengthen the export competitiveness of Indian MSMEs in global markets. It’s a timely move that will aid in sustaining momentum in domestic manufacturing and cross-border trade."
Sundeep Mohindru, Founder & Promoter, M1xchange
“Lower rates and higher liquidity will strengthen the flow of formal, low-cost credit to MSMEs via platforms like Microfinance, TReDS, etc. The CRR cut in particular ensures greater participation from banks, making trade financing more accessible to small businesses navigating delayed payments.”
Sadaf Sayeed, CEO, Muthoot Microfin:
“RBI monetary policy is 10/10, it has an all-round focus, maintaining growth momentum, by cutting rates by 50 bps, liquidity infusion by cutting CRR by 100 bps over the year and targeting inflation at 3.7%. “It is great to see both GOI fiscal policy and RBI monetary policy working in tandem to propel the Indian economy to a new growth trajectory. It augurs well for the industry and our country”
Akshay Mehrotra - Cofounder & CEO, Fibe
"RBI’s 50 basis point repo rate cut coupled with an additional 100 bps CRR reduction, supported by a sharp decline in inflation, is a timely move to ease liquidity and stimulate credit growth. Both consumers and businesses stand to benefit from this which will result in lowering of borrowing costs. These measures by the regulator reflects its complete faith and confidence on the strong macroeconomic fundamentals that will shape the country’s growth roadmap going ahead. For consumers, this will create a more favourable environment to access affordable credit and flexible financing options. Overall, we see RBI’s decisions as catalysts for deepening financial inclusion and remain optimistic about the opportunities ahead as India’s financial ecosystem continues to strengthen and evolve."
