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As AI-based loan apps boom in India, some borrowers miss out


Hundreds of mobile lending apps have mushroomed in India as smartphone use surged and the government encouraged digitisation in banking, with financial technology (fintech) firms rushing to fill the gap in access to loans. Reuters
As the founder of a consumer rights non-profit in India, Karnav Shah is used to seeing sharp practices and disgruntled customers. But even he has been surprised by the sheer volume of complaints against digital lenders in recent years.
While most of the grievances are about unauthorised lending platforms misusing borrowers’ data or harassing them for missed payments, others relate to high interest rates or loan requests that were rejected without explanation, Shah said. ....

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Fintech cos say loan collections dip; RBI's recast plan created confusion among customers


Fintech cos say loan collections dip; RBI s recast plan created confusion among customers
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Financial technology (fintech) lenders are witnessing a slowdown in loan collections during the second wave of COVID-19, with paybacks for overdue loans being impacted by up to 20 percent, as agents are unable to go into the field, a survey said on Friday.
The RBI announcement on loan restructuring has created confusion within the customer segment, the survey by a lobby group of the new-age lenders said.
Apart from the inability of the collection agents, the impact on repayment abilities at borrowers end because of genuine distress and medical emergencies was blamed for the dip in collections in the survey conducted by Fintech Association for Consumer Empowerment (FACE). ....

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