NCL Research Enters Digital Personal Loan Business; Plans Fintech Subsidiary

Focus on digital and retail lending

Under the proposed business, NCL Research plans to offer a range of retail credit products, including digital personal loans, salary-based personal loans, loans for self-employed professionals and consumer finance solutions.

The company may also introduce other permissible retail lending products in the future, subject to necessary approvals.

As part of the expansion, the company also plans to incorporate a subsidiary that will develop software for fintech services, subject to approval from the relevant authorities.

NCL Research said it intends to build a technology-driven lending platform using digital onboarding, technology-led underwriting, data analytics and risk-management processes while maintaining prudent credit standards.

Company sees opportunity in India’s expanding credit market

The company believes its entry into digital lending could help diversify its revenue base and create a new source of recurring interest income.

According to the Board, the proposed business could also improve long-term returns on capital and enable NCL Research to build a scalable fintech-led lending platform, while tapping into the growth of India’s retail credit ecosystem.

The company cited rising digital adoption, increasing consumer spending, expanding financial inclusion and growing demand for technology-driven credit solutions as key factors supporting the growth opportunity in the personal lending segment.

Shareholder approval to be sought

To facilitate the proposed diversification, NCL Research’s Board has approved alteration of the Main Object Clause of the Memorandum of Association, wherever required.

The company will seek shareholders’ approval through an Extraordinary General Meeting, Postal Ballot or the forthcoming Annual General Meeting, as applicable.

The company has also authorised its senior management, including the Managing Director, Chief Financial Officer and Company Secretary, to undertake the required regulatory filings, appoint advisors and execute agreements necessary to implement the proposed business.

RBI compliance highlighted

NCL Research stated that the proposed lending business will be undertaken in compliance with applicable laws and regulatory requirements, including those of the Reserve Bank of India (RBI) wherever applicable.

The company described the move as an important milestone in its long-term growth strategy, with the diversification expected to strengthen shareholder value through participation in India’s expanding financial services sector.

NCL Research shares are listed on BSE under Scrip Code 530557.

Disclaimer: This article is for informational purposes only and does not constitute financial advice.