Blogs

India’s Next Credit Test: Building Culture Before Scale Turns to Strain India’s consumer credit engine is running hot. Fintech NBFCs sanctioned 10.9 crore personal loans worth INR 1,06,548 crore in FY 2024-25, showing how digital channels now deliver scale once unimaginable. Approvals arrive in minutes, APIs weave together data, and automated underwriting drives throughput. This…

Phone Locks May Deter Defaults, But Better Onboarding Prevents Them In an era where small-ticket personal lending is growing rapidly, defaults have become a mounting concern for financial institutions. Regulators have proposed technological enforcement, locking devices upon nonpayment as a deterrent. However, that is a crude lever: the real solution lies in refining how borrowers…

Signals You Can Lend On: The Open Finance Shift India’s credit system hides an uncomfortable truth. About 37 percent of adults are invisible to credit bureaus. For them, the absence of a file does not mean they are unworthy borrowers, only that their financial lives have not been captured in traditional formats. Yet in lending,…

Credit Line on UPI: Powering Access for the Underserved Emergence of Credit Line on UPI Explained In September 2023, the Reserve Bank of India (RBI) officially approved pre-sanctioned credit lines through UPI. The market demand for this feature emerged from several forces. Many consumers and small businesses were underserved by credit cards or formal personal…

Trust by Design: Mule-Resilient Onboarding in Digital Lending How Mule Accounts Infiltrated Digital Lending’s First Mile The rapid growth of digital lending has opened new doors for financial inclusion and credit access to underserved populations, including Micro, Small, and Medium Enterprises (MSMEs). Yet, this progress has also created an entry point for financial fraud, most…

Consent to Credit: Inside AA-Driven Underwriting – from Framework to Growth Drive Before AA: fragmented data, brittle consent, and privacy concerns Before the introduction of the Account Aggregator framework, digital lending in India relied on fragmented data sources and manual workflows. Lenders received statements through uploads that varied in format and quality, which made verification…