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.
Wide range of credit products
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
“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.
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