First Loss Default Guarantee
On 8th June, 2023, the Reserve Bank (RBI) came out with guidelines on default loss guarantee (DLG) in digital lending, a move aimed at ensuring the orderly development of the credit delivery system.
- As per the guidelines, a regulated entity(RE ) may enter into DLG arrangements only with a Lending Service Provider (LSP)/ other RE with which it has entered into an outsourcing (LSP) arrangement.
- The LSP-providing DLG must be incorporated as a company under the Companies Act, 2013.
About Default Loss Guarantee (DLG)
- It is also known as First Loss Default Guarantee (FLDG).
- FLDG is a lending model between banks or ....
Do You Want to Read More?
Subscribe Now
To get access to detailed content
Already a Member? Login here
Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material since 2018 of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Economy Watch
- 1 India’s Agricultural Sector in 2025
- 2 Self-Reliance in Minerals and Metals
- 3 New Guidelines for Major Shipbuilding Schemes
- 4 Performance Evaluation of Solar Power Projects
- 5 Report of Select Committee on IBC (Amendment) Bill, 2025
- 6 Five Products Get Geographical Indication (GI) Tag
- 7 Rapid Financing Instrument
- 8 Pass-Through Tax Status
- 9 RBI Approves Risk-Based Deposit Insurance Framework for Banks
- 10 The Securities Markets Code Bill, 2025
