Oct 19, 2020 ●15 min read
The Evolution of Digital Lending in India
Digitisation has completely changed the already existing lending system in India. This has become possible with the shrinking gap between new technologies and the lending system. With digital lending each and every step of the lending and borrowing process is now completed online which means the process is completely paperless and quicker. FinTech companies has combined the financial services with the current technology which made it easier for the lenders and the borrowers to avail and lend the money.
Digitalize landing uses customize models and industry best practices along with the existing customer data to automate the decision making process attached to lending . It completely eliminates the risk of improper decision making as it happens in regular practice in traditional lending. Many time it happens with the borrower that the need for money is immediate but the loan application and processing takes a lot of time. In digital lending this error can be totally eliminated and customers can be served as per the demand for finances. Indian banking sector has evolved in the last ticket and therefore it is still in a growing condition to reach its end market. Therefore huge amount of products can be served to the customers through digital lending platforms looking at their demographic and economical characteristics.
Digital way of lending saves a lot of cost over the manpower as well as the fixed asset by any banking or financial institution.
In today's world, technology is very cheap and the data processing services provided all over world are the talk of the town. Therefore it becomes easy to handle many customers at different locations at a time.
Collection of borrower's information, its validation and disbursement of a loan becomes easy and in pace with digital lending.
Digital Lending performs various processes on diverse levels where lending institutions with different organizations and channels get associated at one place, which ultimately brings a huge network of institutions growing together.
The customer who gets associated with such technological advancement and efficient organization, gets good support from their side and feels satisfied with the services provided to him in such a short period of time.
Apart from the personal level, digital lending platforms have even helped many SMEs to grow in India. As with the traditional lenders they were not able to borrow as much as they required and it took longer as well. But with the growth of digital lending in India, SME industries also flourished as FinTech companies provide loans easily to the SMEs and start-ups according to their eligibility and without any hassle. If you are looking for comprehensive business loans, check out our Business loan options.