New Delhi, March 10 -- Fintech Moneyview is hunkering down on a lending model just as digital lending peers such as Paytm and KreditBee are either moving away from it or focusing on growth in other models.

In its draft IPO prospectus, the Bengaluru-based startup revealed plans to substantially expand default loss guarantee (DLG) arrangements with lending partners as part of its credit distribution strategy. A default loss guarantee allows a partner, such as a fintech, to compensate a regulated entity, such as a bank or NBFC, for loan defaults.

The move comes even as financial institutions have been reassessing such guarantees after the Reserve Bank of India introduced guidelines in mid-2023 that capped DLG exposure at 5% of a loan portf...