Mumbai, April 1 -- Faster credit reporting-through weekly incremental updates from July-is set to particularly benefit digital non-banking financial companies (NBFCs) by curbing loan stacking, where borrowers exploit the blackout window between loan sanction and reporting to take multiple small loans.

Credit bureau and fintech executives told Mint that the compliance requirement is especially important for digital personal loans, buy now, pay later (BNPL), and other frequently disbursed unsecured products, where borrowing patterns can shift within days rather than months.

"In a traditional monthly reporting cycle, the lifecycle of a 15-day BNPL transaction or a 30-day micro-loan is essentially a blind spot.it begins and ends before the ...