Digital lending platforms are revolutionising credit access in India, tackling the credit gap that has long hindered economic growth. As one of the fastest-growing economies globally, India still grapples with significant financing challenges, particularly for micro, small, and medium enterprises (MSMEs) and underserved communities. Traditional lending often overlooks these groups due to stringent credit evaluations and limited outreach.
A panel discussion at TechSparks 2024, titled ‘Bridging India’s Credit Gap: Maximising Digital Lending’, featured industry experts who explored the transformative impact of digital lending on credit access. The panel included Devang Mundhra, CTO of KredX, and Patanjali Somayaji, CTO of axio, who are pioneering the use of technology for financial inclusion in India.
The current landscape of credit in India
Devang Mundhra opened the discussion by emphasising the vastness of India’s credit gap, which he described as “huge”. Estimates suggest a shortfall of $1 trillion to $2 trillion, particularly affecting MSMEs which represent about 30% …