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India is the world's largest market for Android-based mobile lending apps, accounting for ~82% of all online lenders worldwide. According to a study conducted by CloudSEK, a Bengaluru-based digital risk
management firm, India currently has 887 active lending apps.
India’s digital lending stood at US$ 110 billion in FY19.
Digital lending to micro, small and medium enterprises (MSMEs) in India is expected to reach US$ 100 billion by 2023.
In the previous two years, India's BNPL industry has seen a 45-fold increase in transactions. In terms of market size, the segment is predicted to rise 11 times from US$ 4.1 billion in 2021 to US$ 43 billion in 2025.
In January 2022, Paytm India’s largest fintech company and NBFC Fullerton have plans to expand digital lending to MSMEs.
In October 2021, Indian Bank announced that it has inked MoUs with three leading non-banking finance companies (NBFCs) and housing finance companies (HFCs) to offer co-originate loans to priority sectors.
In September 2021, Central Banks of India and Singapore announced to link their digital payment systems by July 2022 to initiate instant and low-cost fund transfers.
In August 2021, Prime Minister Mr. Narendra Modi launched e-RUPI, a person and purpose-specific digital payment solution.
(e-RUPI is a QR code or SMS string-based e-voucher that is sent to the beneficiary’s cell phone. Users of this one-time payment mechanism will be able to redeem the voucher at the service provider without the usage of a card, digital payments app, or internet banking access.)
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References / Read More: https://www.ibef.org/industry/banking-india ; E-Estimate, Omdiyar Network and the Boston Consulting Group (BCG). Known Primary Source: Digital Lending Report 2019 – BCG, News Article.
Disclaimer: This information has been collected through secondary sources, primarily from IBEF. "The views, information or opinions expressed in the article are solely those of the secondary sources from which the material is collected and do not necessarily represent those of 'Applied Researches' and its employees. ‘Applied Researches’ is not responsible for any error in factual information mentioned in the article."