According to a recent report from the Boston Consulting Group (BCG), loan disbursement models have seen frenetic activity in recent years. Photo: Bloomberg
A homegrown online lending and credit card platform RupeeQ aims to triple its digital lending portfolio to Rs 300 crore by 2027, thanks to the government’s push for high-speed internet services in semi-urban and rural areas.
Speaking to PTI, Neeru Puri, Managing Director and Chief Financial Officer, RupeeQ said, “It is estimated that the total value of India’s digital lending business will exceed $1 trillion in the next five years. At RupeeQ, we expect to triple our loan disbursements. portfolio by 2027, while we had clocked around Rs 100 crore in the financial year 2023-2024.”
According to reports, India will have 900 million active internet users by 2025, while 56 percent of all new internet users will be from rural areas and 65 percent of new internet users will be women.
Puri felt that the government’s push for digitization and penetration of high-speed internet even in semi-urban and rural areas will help the company achieve its goal.
Puri said India’s digital credit market witnessed phenomenal growth in value from $270 billion in 2022 to an estimated value of $350 billion by the end of next year, with a remarkable compound annual growth rate (CAGR) of 39.5 percent.
In the current financial year, consumers’ digital footprint in financial services would increase to 75 percent (from the current 50 percent). This is mainly due to the explosion of smartphones and mobile internet, Puri explains.
According to a recent report from the Boston Consulting Group (BCG), loan disbursement models have seen frenetic activity in recent years.
There are a few fundamental drivers that are all coming together to turbocharge this space.
First, consumer behavior is changing dramatically, influenced by the experiences offered by internet giants. Secondly, there have been some rapid technological developments, led by the ever-increasing penetration of smartphones and the proliferation of data. Third, the regulatory environment is becoming increasingly favorable, with laws increasingly driving the digital credit market.
Citing the fact that 890 million Aadhaar card holders are from rural India, Puri said that in the coming years we will witness a sharp increase in loan applications from rural areas as digitalization has made it very easy for the rural population will make to get loans. using e-KYC (electronic know-your-customer).
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)
First print: April 16, 2024 | 5:34 PM IST