How Digital Lending Platforms Are Redefining Credit Access In Small Towns
India's digital lending industry is on an upward trajectory, expected to cross $350 billion by 2030, driven by increasing smartphone penetration.
Technology in Financial Inclusion: As India's financial ecosystem undergoes a digital transformation, a new wave of technology-led lending platforms is emerging as a powerful force for economic inclusion, particularly in underserved rural and semi-urban regions.
Driven by rapid smartphone penetration, widespread adoption of UPI, and policy initiatives promoting financial inclusion, India's digital lending market is projected to cross $350 billion by 2030. This boom is enabling a range of fintech firms to close long-standing credit gaps for first-time borrowers, informal sector workers, and micro-entrepreneurs.
Some fintech platforms offering digitals small-ticket loans in small towns in India are Fintifi, IndiaP2P, KreditBee, CASHe, ZestMoney, mPokket, Indifi, MoneyTap, NIRA, FlexiLoans, LoanTap, Faircent, KrazyBee, EarlySalary, PaySense, and Upwards.
One such platform, Fintifi, said it is helping redefine the borrowing experience for urban and semi-urban consumers by offering paperless, AI-enabled personal finance solutions. Its offerings include personal, wedding, travel, and instant loans, as well as a flexible line of credit for those with limited credit histories. Through partnerships with a network of lenders including NBFCs, banks, and fintech companies such as mPokket, Lending Plate, and Ram Fincorp, the platform claims to disburse loans within hours — targeting young professionals and middle-income households seeking speed and transparency.
India's digital lending industry is on an upward trajectory, expected to cross $350 billion by 2030, driven by increasing smartphone penetration, UPI adoption, and the government's push for financial inclusion. With over 600 million digitally active consumers, the country is witnessing a sharp rise in demand for instant, accessible, and personalized credit solutions.
Aryan Makhwana, head of Fintifi, said, 'At Fintifi, we believe technology can rewrite the rules of credit access and inclusion in India. By marrying advanced technology with deep market insights, we aim to be the go-to financial companion for every Indian consumer."
But the shift in India's credit landscape is not limited to convenience.
In its latest report, IndiaP2P showed how ethical and impact-driven fintech can foster grassroots development. According to its FY25 impact report, IndiaP2P said 99% of fintech lending portfolio was directed to non-urban areas, with 78% of loans going to women entrepreneurs. A majority of its borrowers — 97% — are based in rural and semi-urban regions, and more than 75% of loans support small business growth.
The platform said its focus aligns with key UN Sustainable Development Goals (SDGs), such as No Poverty, Gender Equality, and Reduced Inequality. Notably, 80% of loans were disbursed to lower- and middle-income households, and 32% of its investor base comprises women—an indicator of growing trust in fintech-led inclusive finance models.
As fintech players expand their services beyond credit—venturing into insurance, investment advisory, and voice-assisted interfaces in regional languages — the broader goal is becoming clear: to make financial products accessible, affordable, and understandable for all segments of India's population.
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First Published:
July 29, 2025, 13:08 IST
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