Vol. 6, Issue 2, Part E (2024)

Digital lending is the practice of granting loans and credit facilities using online platforms and digital technology, while utilizing data analytics to determine the creditworthiness of the borrowers. As digital financial platforms, culture, and infrastructure-such as speedier net connectivity-proliferate, digital lending is growing in popularity. In order to maintain the general stability of the financial system and to guarantee fair play by the credit-granting firms, the RBI is taking steps to regulate the entities involved in digital finance. With only a few clicks on the computer, applicants for digital loans may complete the easy application process. The loan application is handled and authorized in a matter of hours to days once the applicant submits the required paperwork and personal information. The loan money is immediately deposited into the borrower's bank account upon approval. Within the fintech business in India, digital lending is a fast-growing sector. This industry has grown astronomically in the last several years, from a 2012 valuation of nine billion dollars to an estimated 2020 valuation of about 150 billion dollars. According to experts, the industry will only continue to expand and is expected to reach an astounding 350 billion dollars in value by 2023.The benefits of digital lending are streamlining the application process, digitalization the lending information, using lending information for analysis, offering mobile lending features and document e-signing, providing loan credit for no-credit customers.