Fintech lending changed lending ecosystem in India

Abstract

Fintech lending is an alternative vehicle to traditional lending. In the modern lending industry, fintech lending will play a vital role as it ensures banking everywhere. The fintech lending ecosystem in India is improving every day and by 2023 it will emerge as the key lending source. The RBI issued detailed guidelines in this regard in Sept, 2022 to ensure a transparent and fair lending mechanism at a low cost. Fintech lending is providing new opportunities to borrowers and investors at lower cost, greater accessibility, and faster speed. However, there are still many challenges to overcome which are impeding the growth of the fintech lending industry. The regulators and the fintech companies need to overcome these challenges by developing a strong risk management system, creating trust in customers, and using new technology in the lending ecosystem as early as possible.