Protecting borrowers in the digital era
Digital lending has the potential to benefit Indians immensely, but it also poses some major risks
Imagine borrowing a small loan and having your name splashed all over social media for not being able to pay it back on time. Or imagine borrowing a multitude of tiny loans you thought you could pay back, only to realize you’re stuck in an endless cycle of debt. These are real stories from countries where the new-age “digital lending" industry has evolved. As India takes its first steps in digital lending, which promises to unleash credit for hitherto underserved segments, it must ensure such lending is done responsibly.