The Covid-19 outbreak, which erupted in 2020, came as a boom for the fintech industry in India. As a result, the whole FinTech ecosystem touched the sky and above in terms of popularity in recent years and even more, especially after the pandemic.
As the term implies, ‘Digital Lending’ is the contemporary practice of applying for and giving out loans or credit to borrowers by financial services, totally via the online mode, with just a single tap on the smartphones or laptops. Growing smartphone usage, internet penetration and the convenience and efficiency that digital brings is the prime reason behind the rising popularity of digital lending.
Further, as the Internet tends to reach even the remotest areas of our country, it allows all types of citizens to avail financial services digitally. They are actively becoming digital savvy in the current era of technology. Look around you. Do you also see that everyone is moving towards e-everything? When it comes to banking, there is no doubt that you have your bank in your hand as every single thing is now digitally available!
During the Covid-19 outbreak’s initial stage, many people, especially students like me, desperately needed money. Students’ side income helps a lot, but this hustle wasn’t possible due to the lockdown situation. This was when I came across TrueBalance, an online loan app on social media. It stated that a personal loan would be disbursed within just 10 minutes. At first, I didn’t believe it, but after registration, I applied for the same, and instantly Rs 50,000 was credited to my account. This loan app offers you to choose from Rs 5,000 to Rs 50,000.
Do you see what I did here? I needed money and was sitting at my home. Unfortunately, due to the Covid situation, I couldn’t get out. But just with my Internet-enabled smartphone within my comfort zone, I could access a personal loan from this loan app for my personal needs in just a few minutes.
Below mentioned are some of the important points why digital lending is getting so popular in India :
- Digital is the new normal Post-Covid.
During the pandemic, banking services and many sectors have switched to the digital model. Further, with time, more and more people have adapted to it when they witnessed the comfort and easiness it provides. Gone are the days when you had to go to your bank to get a personal loan and explain to them why you wanted it. Instead, you now have to search for “personal loan apps India” on your search engine and get funds within minutes.
- Better customer experience
Rather than waiting in long queues at your bank, won’t you like to access your financial needs within the comfort of your abodes? Loan apps like TrueBalance make sure to verify all the necessary details via the online mode only, and the whole procedure to get a personal loan here is virtual. Moreover, these loan apps make emergency funds easily available for those in need.
- Cost and time reduction
The adoption of Digital Lending has significantly reduced cost and time for both the borrower and the lender. Your short trip to your bank costs something, and with the boom of digital lending, you don’t realise that you can save both time and money. On the lender’s side, they can cut the customer acquisition costs and save their and the borrower’s time by approving personal loans within a few minutes.
These above mentioned reasons clearly state and give us a crystal clear picture of why digital lending is so popular. When the era of smartphones began, who thought that there would be a thing such as an online loan app where instant cash for any emergency use would be available with just a single click. The advancement of technology and the increasing Internet penetration in our country have made people smarter than before. It is important to note that, as per the experts, the digital lending landscape in India will continue to advance at a rampant growth trajectory in the coming years.