# Bajaj Finance cuts risky loans to protect credit

> Bajaj Finance reduces loans to high-risk borrowers to improve credit quality.
- Title: Bajaj Finance cuts risky loans to protect credit · mint
- Summary: Bajaj Finance reduces loans to high-risk borrowers to improve credit quality. Bajaj Finance will cut new loans to customers with three or more lending…
- Keywords: bajaj finance, unsecured loans, credit risk, loan originations, risky borrowers, financial stability, capital raise, profit growth, news, india, Bajaj, Finance
- Source: mint — https://livemint.com/companies/bajaj-finance-to-shrink-lending-to-reckless-borrowers-non-bank-lender-loans-11792422514442.html
- Author: Subhana Shaikh
- Published: 2026-10-19T17:15:41+00:00
- Read time: 1 min
- Topics: bajaj finance, unsecured loans, credit risk, loan originations, risky borrowers, financial stability, capital raise, profit growth, news, india
## Bajaj Finance limits risky loans
Bajaj Finance plans to halve new loans to customers with three or more lending relationships to 3.5% by March 2027.

> Three personal loans is a single univariate metric that continues to trouble us
## Risky borrower share reduced
The company has already reduced such customers in loan originations to 7% from 14% earlier.
## Credit risk focus
Bajaj Finance is particularly watchful of unsecured borrowers including self-employed customers.
## Provisions for credit risk
The company made a macro-economic provision of ₹ 337 crore for credit risk.
## Stage 2 and 3 assets rise
Stage 2 and 3 assets increased by ₹ 1,601 crore in Q2 including ₹ 1,047 crore from gold loans.
## Gold loan strategy change
Bajaj Finance stopped short-tenure gold loans requiring branch visits every three months.

> A short-term loan doesn’t work for the customer, doesn’t work for the company, and is not sustainable
## Assets under management grow
Assets under management grew 26% to ₹ 5.84 trillion including gold loans at ₹ 24,195 crore.
## Capital raise planned
Bajaj Finance seeks ₹ 17,500 crore capital raise to strengthen balance sheet.
## Profit growth target
Bajaj Finance targets 20-25% annual profit growth despite credit risk measures.
## Key takeaway

Bajaj Finance will cut new loans to customers with three or more lending relationships to 3.5% by March 2027 to reduce credit risk.