
According to recent reports, in a mail to customers, Slice is said to have told their customers about having to seek fresh credit approval every time they use their card now, as opposed to a free-to-use credit line in place previously.
In other words, Fintech Slice has recently informed all of its customers that it will be tweaking its lending model a bit, a move that can simply be seen as an attempt to work around the Reserve Bank of India’s (RBI) mandate, stating that credit lines into prepaid payment instruments (PPIs) like wallet as well as prepaid cards is prohibited.
As mentioned previously, in a communication to its customers on June 19, the Tiger Global-backed startup is said to have asked customers to seek fresh approval for a specific amount every time they use the Slice prepaid card to transact.
Moving further, this new model is said to be somewhat similar to how players just like ZestMoney and Axio, which commonly identify as pure play Buy Now Pay Later (BNPL) lend. As a matter of fact, these players have informed customers of their eligible limits. However, separate loans from various lending partners are sanctioned for specific purchases as sought by the customer.
In addition to this, while this particular model is to be regulated by the digital lending norms, it was unimpacted by the RBI’s clarification as Axio as well as ZestMoney do not actually lend through any PPIs. Whereas Slice is said to be keeping its core card offering intact by changing the credit line to a loan.
“While Slice was earlier extending credit lines, it was declining payments at some merchant checkout points which it thought were unsafe. However, the RBI’s clarification triggered them to tweak it further,” said a fintech executive.

Moreover, the platform has named this a new feature known as ‘Purchase Power’ and said “The decision will be determined primarily based on merchant credibility risk, fraud checks, and your past payments as well as repayment patterns.”
Also, as noted in a report by Moneycontrol, a Slice Spokesperson said, “We at slice follow high governance standards, and with this change, we want to give the most transparent product possible. We think that by making every transaction an explicit borrowing event, we not only safeguard ourselves against unnecessary risk but also prevent our borrowers from overextending themselves.”
Lastly, the underwriting as well as the so-called approval for the loans are said to be done in real-time, which means that the amount will also be rejected or approved after real-time underwriting.
This move will surely be able to increase the friction for its already existing customers who have been using the said card as a payment mode. Now, customers will have to wait for the company’s approval of the credit limit every time they decide to use the card.
Reading so far, I hope you must have gotten a fair insight into Slice and its new lending policies and by now I believe you will be able to decide on your own whether or not you think it was the right thing to do and whether or not you will choose Slice as a payment mode with these new guidelines in place!
In conclusion, what are your thoughts on Slice’s new lending policy? Do let us know in the comments area below. To know more about such reports, do check out other articles we have on our website. Thank you for your time & if you found our content informative, do share it with your investor friends!
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