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33% of Indian Consumers Unaware of Risks Posed by Illegal Loan Apps: New Study

16Apr

By Ankit1 Comment

Digital Lending, Cyber Crime, Finance, Lending

33% of Indian Consumers Unaware of Risks Posed by Illegal Loan Apps: New Study

A recent report by the Fintech Association for Consumer Empowerment (FACE) has shed light on the concerning issue of Indian consumers being tricked by illegal loan apps. Despite efforts to raise awareness and enhance consumer protection measures, the report reveals that a significant number of consumers still lack knowledge about digital loans and struggle to identify illegal lending applications. The findings highlight the urgent need for action to address these gaps and safeguard consumers from fraudulent practices. Limited Knowledge and Detection Challenges: According to the report, one-third of high-confidence customers in India have limited understanding of their digital loans and face difficulties in identifying illegal loan apps. Many consumers are unaware of key facts and grievan...

RBI’s Regulatory Moves: Personal Loan Growth Slows Down

The FinTech sector isn’t the only one feeling the impact of regulatory actions. Banks are now treading carefully in the realm of personal loans, thanks to the Reserve Bank of India’s (RBI) recent moves. Let’s delve into the details and understand how this cautious approach is affecting borrowers and lenders alike. Moderated Growth in Personal Loans According to RBI data, the year-on-year growth of unsecured personal loans has taken a step back. In February, it moderated to 23.1%, down from 24.4% in January and 27.6% in December 2023. This shift reflects banks’ response to the RBI’s concerns about the rapid expansion of personal loans. But what prompted this change? Let’s explore: The RBI’s Action Plan In November of last year, the RBI decided to tighten t...

Microfinance Sector Witnesses Robust Growth: Loan Accounts Surge 9% and NBFC Disbursements Soar 32%

The microfinance sector in India is experiencing a remarkable surge in loan accounts, with significant growth indicators across various metrics. Let’s delve into the latest developments: Loan Accounts Reach New Heights As of December 31, 2023, the number of microfinance loan accounts serviced by micro lenders has witnessed a 9% year-on-year increase, totaling an impressive 140.8 million accounts. This surge reflects the growing demand for microfinance services, especially among underserved communities. Diversified NBFCs Lead the Way Notably, diversified non-banking financial companies (NBFCs) have played a pivotal role in driving this growth. Their microfinance disbursements surged by an astounding 32% year-on-year during the December quarter, marking the highes...