Paytm Approves ₹90 Cr Default Loss Guarantee; Independent Director to Exit

Key Highlights • Board approved a Default Loss Guarantee (DLG) of up to ₹90 Cr for lending partners, including Muthoot Fincorp and Kisetsu Saison Finance • DLG is aligned with Paytm's existing loan distribution business model • Supports expansion of lending partnerships and credit distribution activities Corporate Governance Update • Independent Director Ashit Ranjit Lilani has withdrawn consent for re-appointment due to professional commitments • Current term will conclude on July 4, 2026 • He will also step down from all board committee positions upon completion of his tenure What It Means • DLG can help strengthen relationships with lending partners and support loan origination growth • The director's exit appears to be a governance change rather than an operational issue • Investors may monitor future board appointments and developments in the lending business Learning Outcome Default Loss Guarantees are commonly used in digital lending partnerships to share a portion of credit risk, enabling fintech platforms to scale loan distribution while supporting lender confidence. $PAYTM