New Delhi, Oct. 19 -- Bajaj Finance Ltd is limiting exposure to over-leveraged borrowers to protect credit quality, as risks rise in India's unsecured lending market.

The non-bank lender plans to halve the share of new loans to customers with three or more lending relationships to 3.5% by March 2027 amid concerns indebtedness and repayment capacity of unsecured borrowers, managing director Rajeev Jain said. The company has already reduced the share of such customers in loan originations to 7% from 14% earlier, managing director Rajeev Jain said.

"Three personal loans is a single univariate metric that continues to trouble us. We have brought that down from 14% to 7% in terms of origination. My mandate to the team is to bring that down t...