Anushruti Singh
As the festive season approaches, digital lending startups are gearing up to meet the anticipated surge in loan demand from both small businesses and individuals. Key industry stakeholders are not only expecting increased loan applications but are also leveraging cutting-edge technology and introducing innovative loan products to cater to the festive season’s financial needs.
Mehak Srivastava, Head of Marketing at SahiBandhu, India’s largest gold loan aggregator platform, expressed her optimism, stating, “As the world embraces the spirit of celebration, SahiBandhu is expecting a surge in credit demand among MSMEs for the festival season, notwithstanding inflationary pressures.”
She emphasised the surge in loan applications typically witnessed during festivals and highlighted SahiBandhu’s efforts to support this demand. “We are offering gold loans with interest rates as low as 0.79 per cent per month, serving the immediate requirements that crop up in times of festive urgency for funds. SahiFlexi (overdraft on gold) & SahiDelight (single repayment) are our most suitable gold loan products for such unprecedented demands during the festive business cycle,” added Srivastava.
Pramod Kathuria, Founder and CEO of Easiloan, is also anticipating increased loan applications and a surge in demand. “Several online lending platforms expect loan applications from small businesses to surpass the previous year’s festive season figures. MSME lenders are gearing up for a 20-25 per cent surge in demand during the festival season,” noted Kathuria.
Aditya Damani, Founder and CEO of Credit Fair, which offers flexible tenure financing solutions to homes, residential, housing societies, trusts, and MSMEs is already witnessing loan demand.
“Ahead of the festive season, we witnessed robust demand growth for our solar rooftop financing solutions. We have been witnessing 100 percent growth in solar rooftop financing demand quarter-on-quarter and in the festive season, we expect the demand to grow further in the festive season as people are increasingly becoming aware of environment sustainability due to rising pollution levels,” he said.
Digital lending startups are not just expecting increased demand; they are also adapting their strategies to better serve their customers.
Here are some of the key trends emerging in the digital lending sector:
1. Utilising advanced technology:
- Advanced technology, such as Artificial Intelligence (AI) and Machine Learning (ML) tools, is at the center stage of the lending model this festival season. These technologies are being harnessed to streamline processes, automate decision-making, and provide faster and more efficient services to borrowers. The use of AI and ML enables quicker credit assessments and improved risk management.
2. Offering innovative loan products:
- To attract customers during the festive season, digital lenders are introducing innovative loan products. For instance, HDFC Bank has launched the “baniya loan” program, designed to meet the financial needs of small businesses during the festive season. These tailored loan products are aimed at addressing specific festive season requirements.
3. Supporting small e-commerce players:
- In addition to providing loans, some digital lending startups are extending support to small e-commerce retailers as they prepare for the festive season. This support may include assistance in managing working capital, upgrading infrastructure, and optimizing inventory for increased sales.
Digital lending startups are poised to play a pivotal role in ensuring that businesses and individuals have the financial resources they need to make the most of the festive season. By combining technological innovation with creative loan products, these platforms are set to contribute to the economic vibrancy of the season and help businesses and individuals alike light up their Diwali.
