App-based lending is fast catching on in urban India as it provides easy access to credit

Shiva Kumar is a cheerful 24-year-old accountant, who works for a rice merchant in the narrow congested lanes of Balepete in old Bengaluru. A first-generation graduate, Kumar hails from Yadiyur, located 100 kilometres north-west of the state capital.

Kumar quickly realised that living in a city like Bengaluru on his Rs 22,000-amonth salary left him with only limited savings, in spite of his frugal habits. Indeed, when his mother fell sick and needed `10,000 for treatment, Kumar faced a dilemma. His merchant boss refused to lend him money again, having helped him out once earlier. If only he could get a loan, Kumar was confident that he could repay it within a month or two.

"When I approached a nationalised bank where I had opened an account, they asked me for a salary certificate, income-tax returns and a guarantor as it was a personal loan. Where will I provide all that? I work for a rice trader and I am new to the city. The only option was to approach a moneylender. That is when my smartphone came to use," says Kumar.

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http://www.businesstoday.in/magazine/features/app-based-lending-is-fast-catching-on-in-urban-india/story/234356.html

http://epaper.mailtoday.in/861395/mt/Mail-Today,-July-4,-2016#page/24/1

https://in.finance.yahoo.com/news/app-based-lending-fast-catching-053645951.html