Mumbai, Aug. 7 -- The Reserve Bank of India's (RBI) draft directions proposing restrictions on revolving credit facilities offered by non-banking financial companies (NBFCs) could affect flexi and overdraft loan products across corporate, MSME and unsecured personal loan segments, according to a Morgan Stanley report.

The report said the RBI's draft framework seeks to restrict NBFCs from offering revolving credit products, except for entities authorised to issue credit cards. Under the proposal, loans would need to follow a pre-determined amortisation schedule, while sanctioned limits would not be restored or replenished after principal repayments.

"We think flexi and overdraft loans by NBFCs operating in corporate, MSME and unsecured p...