The growing usage of smartphones and higher internet penetration have boosted demand for unsecured personal loans across rural and semi-urban India as per reports. People in these hitherto underserved markets are now availing of services provided by online marketplaces for gaining access to the best products from banks and NBFCs, which were not available previously.
As per reports, Paisabazaar, the online marketplace, has already disbursed a whopping Rs.220 crore worth of unsecured personal loans every month across 220 locations. These include Tier-1 to Tier-5 cities. According to the associate director at Paisabazaar, Gaurav Aggarwal, there is huge demand from small towns like Ranchi, Jharsuguda, Salem and Kohima.
Paisabazaar offers several products right from credit cards and personal loans to home loans. It has disbursed Rs.2,500 crore for 2016-17 through its platform. The average loan ticket size is Rs.3.7 lakh according to Aggarwal while the interest rates are between 11-24%. Lending marketplaces are witnessing huge demand from customers in smaller towns and cities but the major issue lies in the requirement of documentation for the final disbursal of these loans.
According to experts, traction from rural India has gone up with more smartphone and internet usage but lending products can only be truly accessible once delivery mechanisms become completely paperless. There are efforts being made for implementing authentication systems based on Aadhar and e-KYC and banks can therefore expand their operations and garner a higher number of borrowers across rural India. Lending marketplaces can thus play a major role in customer acquisition.
Banks and NBFCs which are choosing paperless banking like IDFC Bank, Kotak Mahindra and DBS along with Bajaj Finance, are getting to a position where they can cater to higher demand for viable credit products from hitherto untapped locations.