Alternative lending reshaping financial landscape in India

Smaller NBFCs like Bharatloan and Rupee112 are at the forefront of this revolution, providing swift, hassle-free loans to individuals and businesses traditionally excluded from traditional banking. This shift towards financial inclusion is not only empowering individuals but also contributing to the overall economic growth of the country

In today’s fast-paced world, accessing credit has become easier for many, but there are still those who remain excluded from traditional financial services. This is where alternative lending steps in, revolutionising the way credit is granted. Digital lenders, particularly smaller NBFCs like Bharatloan, are leading this change by harnessing the power of fintech.

These innovative lenders use non-traditional data sources, such as rental histories, to assess creditworthiness. This not only broadens eligibility but also speeds up the loan processing time, making it possible for more people to access credit quickly and easily.

Talking to Bizz Buzz, Amit Bansal, Founder, Bharatloan said, “What makes fintech platforms so powerful is their ability to provide a holistic view of an applicant's financial health. Unlike traditional methods that rely heavily on credit scores, fintech offers a more nuanced picture.”

This is especially important for 'credit invisibles'—individuals who lack a sufficient credit history to secure loans from conventional lenders, he said.

The beauty of fintech lending lies in its simplicity and speed. Loan applications are straightforward, and funding is often provided almost instantly. For small businesses and individuals facing urgent financial needs, this swift access to credit can be a lifeline, supporting their financial stability and independence.

Ultimately, digital lenders are playing a crucial role in promoting financial inclusion. By leveraging technology, they are breaking down barriers and empowering underserved communities, ensuring that everyone has the chance to achieve financial success.

Alternative lending is revolutionising access to credit for those traditionally excluded from financial services. Digital lenders, especially smaller NBFCs like rupee112, are at the forefront of this transformation.

Vikkas Goyal, Founder Rupee112 said, “By utilising fintech, these lenders assess creditworthiness through non-traditional data sources like rental and employment histories, broadening eligibility and speeding up loan processing.”

Fintech platforms offer a comprehensive view of an applicant's financial health, allowing lenders to make informed decisions without relying solely on credit scores. This shift is crucial for 'credit invisibles' who struggle to access traditional credit due to insufficient credit history, he said. Moreover, fintech lenders provide rapid, hassle-free loan applications with near-instant funding. This quick access to credit is crucial for small businesses and individuals in need of immediate financial assistance, supporting their financial health and independence. Digital lenders thus emerge as key players in driving financial inclusion and empowering underserved communities.