A quick glance at various digital lending models

•        Over 90% of households in India have access to banking services and digital lending may increase 10-15 times to arrive at INR 6-7 Lakh crore. Let’s have a look at various digital lending models in India:

 

•        P2P lending: Digital platforms that connects the borrows with the lenders offering an often-quick turnaround time for low-cost loans.

 

•        Crowdfunding: Platforms that allow the investees to raise credit from an open group of investors by simply letting the investees to present their business case and attract investments.

•      PoS Lending: Financing of online purchases by making use of conventional data like bank statements and unconventional data like transaction history.

•         Supply Chain Financing: In partnership with NBFCs, targeting merchants using online medium for selling their goods and services by leveraging the merchant data.

 

•        Invoice financing: To fulfil the short-term liquidity requirements, working capital credit is offered to the MSMEs, based on their unpaid customer invoices.

 

•        Pay later loans: Digital credit like that of a credit card in which small loans are offered with an option to make the payment later.

 

•        Mobile lending: Loans given via smartphones to the customers by analysing the creditworthiness using data values including call patterns, e-money usage, etc.

 

•        Digital Mortgage: Mortgage purchases via a digital channel of the traditional mortgage loan process, comparatively reducing the overall turnaround time.