<ul><li>Loan apps and NBFCs in India are funding losses in the Futures and Options (F&O) market with personal and unsecured loans, according to veteran banker KV Kamath.</li><li>These fintech apps and NBFCs lend to users with low credit scores, leading to multiple active loans per borrower with limited repayment capacity.</li><li>The rise of new-age loan apps and NBFCs may have worsened the situation, despite aiming to reduce entry barriers to formal credit.</li><li>SEBI is considering introducing investment eligibility criteria for F&O trading to limit losses by allowing only accredited investors to participate.</li></ul>

Are loan apps and NBFCs fuelling losses for F&O traders?

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