Digital Lending: An Evolving Fintech Frontier
Digital lenders' portfolio increased by 32% to Rs 1.3 lakh crore by December 2024. An uptick in asset quality issues was noted, with personal loans over Rs 50,000 showing more strain. Digital lenders prefer existing prime borrowers over new-to-credit customers, with younger demographics increasingly choosing fintech options.
- Country:
- India
Digital lenders have seen their portfolios expand by 32% year-on-year, reaching Rs 1.3 lakh crore by the close of December 2024, according to a report released on Thursday.
The findings, derived from a study of 140 non-bank finance companies with a digital-first approach, reveal a rise in asset quality issues, particularly in loans secured against property and in the business and consumer sectors.
Young borrowers under 30 are increasingly turning to fintech solutions, with these digital lending platforms primarily focusing on existing prime borrowers, as opposed to new-to-credit clients.
(With inputs from agencies.)
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