Lenders Plan Fee Adjustments Amid Commission Changes, Says Atul Jain

Raamdeo Agrawal predicted strong returns for the market while discussing the effect of commission cuts on lending practices. Industry reports indicate that lenders are considering changes to loan pricing and fees to recover income loss. For instance, Bajaj Housing Finance expects to offset income loss through higher processing charges and lending margins in its affordable housing business.

The shift in income sources is significant for financial institutions, as insurance distribution income previously represented a large portion of profit for NBFCs and housing financiers. These changes could lead to higher borrowing costs for some customers, particularly in affordable housing segments.