Anticipating an imminent increase in funding costs, they have scaled down disbursal targets in the sub-50,000 loans category and are planning to diversify their product portfolio and customer base.
As per industry estimates, 70-75% of the total advances of digital lenders consist of small-ticket loans below 50,000.
"Some digital lenders may reduce their small-ticket loan portfolio. They might enter into portfolios which are more secured," Jatinder Handoo, chief executive officer, Digital Lenders Association of India, told FE."The rise in the cost of funds will make digital lenders choosy, which will reduce the credit flow to first-time borrowers," he added.
Digital lenders are expected to tighten their screening parameters for first-time borrowers, he added. Young individuals with no prior credit score history may find it difficult to get loans from these lenders.
Macquarie estimates the industry's overall loan growth will moderate to 12%-14%, from above 15% currently.
Denne historien er fra December 08, 2023-utgaven av Financial Express Mumbai.
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Denne historien er fra December 08, 2023-utgaven av Financial Express Mumbai.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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