The consumer and SME loan market is expected to grow to $3,020 billion over the next decade, says a Credit Suisse report.The domestic financial landscape is likely to transform mainly on the back of government initiatives like Jan Dhan, Aadhaar and the unified payment interface, as also rising mobile penetration.The report also estimates that total retail loans are likely to increase five times over the next 10 years. Consumer loans-to-GDP ratio is likely to increase to 25 per cent of GDP by 2025-26 from 17 per cent now, driven by the increase in mortgage penetration and contribution from personal and other unsecured loans.
Unsecured personal loans which had slowed down in 2008 onward are now back in favor. The primary drivers for these loans apart from banks are the new age Fintech companies. Owing to big digitization push as well as Aadhar based authentication etc.,the risk associated with these non- asset backed loans are now better managed.
The Fintech companies, with their innovative models from desktop to app based, from their own balance sheet to partner’s balance sheet are redefining the way loans are acquired, assessed and disbursed.
Delhi based NBFC – Cash Suvidha which has always strived to take pole position in the tech enabled lending business has tied up with a new age fintech start up – Shubhloans which is a Risk As A Service platform owned by Datasigns Technologies. This tie up will enable CashSuvidha to holistically risk assess applicants and bring credit to those who deserve but find it difficult to procure credit.
“CashSuvidha aims to disburse over 20000 loan applications through Shubhloans in the year FY18, this tie up is complementary and will help in building synergies” – said Rajesh Gupta – Promoter of Cash Suvidha.