Five Emerging Startups Riding India’s New Lending Tech Wave

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Going through the previous chapters of our lending tech playbook, we have seen the massive impact of the lockdown and the moratorium on digital lenders and NBFCs. But since September, the market is on the recovery track and investor confidence in the lending tech is growing. However, that does not mean that all the demand-supply friction has been solved. Due to the unavailability of data and high risk involved in lending to some business sectors, lenders and digital lending startups have had to revisit a lot of the rules of the game.Due to the rising pressure of NPAs, banks and NBFCs have shied away from extending any credit to nearly a billion Indians and over 58 Mn MSMEs that do not have adequate credit bureau or business data, despite contributing more than 45% to the GDP. While unsecured loans are still an option, there’s a huge amount of risk and the supply for these loans is also through NBFCs and banks which have tightened their lending criteria.But startups are still chipping away at the problem. While NPAs are a real thorn in the sector, startups such as Recordent have come up with payment reporting platforms to help build the …

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