Personal loan

Top Personal Loan Trends That Could Define India’s Loan Industry Going Forward

Technology has really changed the game in the personal loan market with financial technology companies allowing quick disbursements with minimal documentation.

Here are the main trends we can see in the personal loan market lately:

Lenders adopt next-generation pricing

Technology has made business processes easier and created new ways for consumers and financial companies to engage.

Zafar Imam, CEO of FinShell Pay, said CNBC-TV18.com that the convenience of accessing banking services and payments has also had a positive impact on customers’ borrowing habits.

“The sector has seen substantial developments such as the adoption of a new-age underwriting allowing credit institutions to use the latest data collection techniques such as digital fingerprints of borrowers, data from smartphones and other sources to get a better picture of their financial situation and behavior. “

Growing preference for non-level I markets

Imam says the growing coverage of the internet and smartphones has further increased the preference for digital lending channels in Tier II, III and IV cities.

Users can browse and access digital lending platforms and enjoy lending products even remotely.

Wide range of credit products

There is now a wide range of loan products available, such as Instant PL in the form of line of credit cards, cash financing and open lines of credit. In addition, use-case specific solutions have also been introduced to the personal loan market, Imam said.

Growing demand for digital lending channels

With a growing and ambitious population, Raghuvir Gakhar, CEO of CashBean, said India is poised to undergo many digital revolutions to respond to the market.

“Especially being a young country where people find more things and activities to flourish. At the same time, given the infrastructural challenges, not everyone has access to financial services in the traditional sense. Tier 2 and 3 cities don’t always have physical banks or financial services offices, but communications technology has penetrated deep into these areas as well. Therefore, the increase in digital lending is a function of both the aspiration and the meeting of technology in the right place at the right time, ”he said in an interaction with CNBC-TV18.

The rise of the NBFC

The NBFCs also play a central role in the creation of this new financial space. It is also because the loan application is not traditional these days either.

“People are more than willing to meet their needs with low cost loans and therefore don’t want to go through the whole extensive verification process for such cases. In addition, NBFCs, because of their leadership and size, are more agile in meeting these demands and creating products that can be niche or broad, ”said Gakhar.

Disclaimer: The opinions and investment advice expressed by the investment experts on CNBCTV18.com are theirs and not those of the website or its management. CNBCTV18.com advises users to consult with certified experts before making any investment decisions.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *