Digital Lending: Legal Aspect in India

Abstract

Digital lending is the new age practice of applying for and giving out loan or credit to borrowers through the completely online or digital platform by financial services providers. Digital Lending is a remote and automated lending process, majorly by use of seamless digital technologies in customer acquisition, credit assessment, loan approval, disbursement, recovery, and associated customer service. Digital lending has emerged as an effective alternative to traditional lending (by financial institutions) for people who are new to credit or are underserved by the financial system. This business was mainly covered by fin Tech startups, neo banks and Non-Banking Finance Companies (NBFCs). Commercial banks are also fast joining as a financial intermediaries either lending digitally on their own or joining with NBFCs to share the synergies.