The good and bad sides of digital lending, in 5 charts
- Digital lending is on the rise in India, and could revolutionize credit disbursal by reducing costs for banks. However, there is also a rising trend of illegal and unsecured lending apps, whose risks need regulators’ attention
India’s lending space is witnessing a tech-tonic shift with loans increasingly being disbursed through digital means in recent years. Over 6% of all loans given by commercial banks in April-December 2020 were digital, a marked jump from less than 1.5% in 2016-17, said a report by a Reserve Bank of India (RBI) working group last month.