Discover a wealth of insightful materials meticulously crafted to provide you with a comprehensive understanding of the latest trends.
A thorough analysis of a borrower’s financial data is one of the most important aspects of the underwriting process. Inaccurate analysis can open up lenders to risks. These include delayed payment of EMIs (Equated Monthly Installments), and non-repayment of loans. Inaccurate analysis usually results from lenders leaving out certain metrics during the underwriting process. Failure […]
Proactive regulatory initiatives, evolving consumer behaviours, and the thriving funding environment have propelled the growth of the Indian fintech ecosystem. Digital lending is expected to account for around 5% of retail loans in India by the first half of 2028. As more and more customers, particularly, the millennial and Gen Z groups embrace the convenience […]
Access to timely credit is crucial for an individual’s or a business’s financial and social development. The Indian credit score companies offer services that help shape lending decisions, investment strategies, and overall economic stability. Self-monitoring of credit scores by Indians has risen by 73% in 2023, highlighting the growing awareness about the importance of credit […]
Financial statements offer insights into the health of an individual or a business. Lenders can extract valuable information from bank financial statement PDFs to aid them in their lending decisions. Automation has replaced manual analysis of financial statements for many lending businesses, helping reduce the time and effort required to extract, organise, and interpret data […]
Loan fraud is one of the top financial risks faced by lenders today. As of May 2024, it was revealed that the number of bank frauds has increased four times over the last five years. These cases predominantly comprise digital fraud. Such incidents have caused major concerns across the industry. Some lenders have been triggered […]
In the current economic climate, managing interest rate risk has become paramount for lending institutions. The Reserve Bank of India (RBI) recently reduced the repo rate by 25 basis points to 6.00% in April 2025, aiming to stimulate economic growth amid global uncertainties. This monetary easing, coupled with liquidity infusions totaling over ₹6.21 trillion, underscores […]
As of March 2024, the gross non-performing assets (GNPAs) ratio for scheduled commercial banks stands at 2.8%, a 12-year low, exhibiting an improvement in managing default risks. Despite this, lenders must be continually wary of the impact of risky loans, as it is not just limited to the lending institutions’ profitability. It significantly undermines the […]
According to a report, the number of cases referred to the debt recovery tribunal (DRT), grew significantly to INR 4.02 trillion in FY23. Yet, the amount recovered via this route downslided to 9.2% in FY23 as compared to 17.5% in FY2022. This translates to the debt recovery rate for non-performing assets (NPAs) falling from 17.6% […]
At the forefront of the significant transformation in lending operations is the automated decisioning stage in loan processing—a technological leap that’s reshaping how banks and financial institutions evaluate and approve loan applications. Automated Decision-Making Systems, or ADMS leverage cutting-edge technologies such as Artificial Intelligence (AI), Machine Learning (ML), and advanced analytics to streamline the loan […]
The concept of priority sector lending has its origins in 1972. This was when the Reserve Bank of India (RBI) first introduced the concept of opening up credit access to economically underserved consumers. This step was considered to be an important one in the nation-building journey as it enabled development. In June 2024, the RBI […]
