Personal loan: how it went in 2021 and main trends to watch in 2022
It can be seen that with the increase in demand and operations, more emphasis is placed on safeguarding the interests of consumers.
2021 has been a crucial year for the development of the Indian consumer credit segment. Catalyzed by the circumstances induced by the pandemic, the credit scenario has undergone a massive transformation, with digital operations taking center stage.
Madhusudan Ekambaram, Co-Founder and CEO of KreditBee and Co-Founder of FACE, said: âThe main factors influencing the trend were increased demand, a lender friendly approach, reduced red tape in the application process and high availability. credit. This reflected a greater emphasis on convenience and speed features by borrowers while availing the loans, which was served well by the loan service providers. This was made possible by low overhead costs and the use of efficient technology.
According to industry reports, the demand for credit was dominated by personal loans, which is also evident from the fact that they made up more than half, by value, of digital loans made by banks. In addition, experts claim that the nature of credit preference has also seen changes with increased demand for loans and low cost services like Buy Now Pay Later (BNPL). While BNPL loans accounted for less than 1 percent of the value share, the credit tool accounted for 37 percent of the number of loans.
Ekambaram says: âGiven the growth dynamics of personal credit, one can only expect the trend to follow an upward trajectory. Fiscal year 2022 will certainly see deeper technological integration coupled with more efficient credit products. Digital cards have demonstrated their operational ability to reflect the success presented by BNPL. The innovative tool is more scalable and resonates well with the universal case of purchases.
It can be seen that with the increase in demand and operations, more emphasis is placed on safeguarding the interests of consumers. For example, experts believe that recent central bank regulatory actions as well as entity formulation and operations are indicators of the healthy growth the ecosystem aspires to achieve.
“The degree of scrutiny in the segment will see a further increase in 2022, given the dynamic nature of the industry. This will favorably translate into a more inclusive financial environment, with the existence of credible lenders and greater consumer awareness, âadds Ekambaram.
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