Microfinance and Self-Help Groups in India
Digital Lending and the Future
Mobile payments, credit bureaus and digital lending are changing microfinance, raising new opportunities and new risks.
Technology is altering how small loans are made.
Digital collections
Digital repayment lowers the cost of collections.
Data
Transaction data helps lenders assess risk.
New risks
Predatory loan apps and data misuse have harmed many borrowers.
Regulation
The RBI has issued rules on digital lending to protect customers.
An app loan
A quick small loan on a phone app can turn costly if the interest and fees are hidden.
Trusting any app that promises fast loans
Check that lenders are registered.
Key takeaways
- Digital tools cut costs.
- Data helps assess risk.
- Predatory apps are a danger.
- Rules protect borrowers.
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