Nearly nine out of 10 clients in India use fintech loan apps to take we lend for emergencies, medical and skills upgrading needs, according to a new report released Thursday.

According to the report of the Fintech Association for Consumer Empowerment (FACE), an association of fintech and digital lending companies.

“Customer voices are very reassuring that digital credit is meeting critical customer needs, making them resilient to deal with everyday demands (medical/emergencies/cash flows) and also to invest in their future and aspirations,” said Sugandh SaxenaCEO of FACE.

A report by the Reserve Bank of India’s Working Group (WG) has recommended steps for customers to access genuine and secure regulated lending applications.

“Equally important is clients’ understanding of loan terms, including the price to take out a loan they can afford and the ability to connect with lenders for inquiries/complaints,” Saxena added.

To date, 45% have used one app to borrow digitally, while 55% have used two or more apps to meet their credit needs.

In the absence of a digital loan application, 43 percent would borrow from friends and family, but a significant 29 percent would delay or forgo the need.

The top three parameters customers consider when choosing a digital lending app are loan amount, customer reviews/ratings of the app, and ease of use.

“The main issues customers face when interacting with a digital lending app are identifying the right app, customer service, understanding terms and conditions,” the report mentions.

For the vast majority, the need for a loan is urgent and real, and they have had to finance it compulsorily, he added.

41% of taxpayers have not yet filed their IT return, 10% face technological failures

Google Pay Dos and Don’ts to Keep Scammers Away in 2022