The volume of business loans in India witnessed a 16.3% year-on-year growth on March 24 against 12.5% in the same period on March 23. Further, the total credit extended to businesses was around ₹82.73 lakh crore on March 24 against ₹71.16 lakh crore in the previous year. These figures indicate a growing demand for business […]
Maximizing MSME Loan Portfolios: AI-Driven Risk Assessment Strategies
The Micro, Small, and Medium Enterprise (MSME) sector continues to be a promising yet underserved segment in the credit market. By March 2024, for instance, the MSME loan segment witnessed a 17.8 % growth compared to the same period the previous year. The total valuation of the loan portfolio increased to INR 64.1 trillion. Therefore, […]
The Future of Credit: Anchor-Based Finance Explained for Modern Lenders
Traditional lending practices are rapidly becoming obsolete as financial institutions seek more innovative credit solutions. This transformation is critical, given the IFC’s finding that 40% of formal MSMEs in developing countries face an annual financing gap of $5.2 trillion. Accenture recently shed light on this transformation – their latest survey found 90% of businesses showing […]
RBI Innovation Hub: Building a Unified Lending Interface with Aggregators
In recent years, India’s digital lending industry has significantly boomed. Statista reports that it’s one of the “fastest-growing FinTech segments.” For instance, it grew from USD 9 billion to USD 270 billion in the latest decade (2012-2022). According to many analysts, it’s all thanks to strategies offered by the RBI Innovation Hub (RBIH). Recently, they […]
Micro LAP: The Future of Small Ticket Lending for Lenders
In the small-ticket lending market, Micro Loan Against Property (Micro LAP) serves as foundational support for lenders and financial institutions. It allows them to cater to the underserved segments with a secure and flexible way to access funds. By using loan applicants’ residential or commercial property as collateral, Micro LAP provides instant credit access to […]