Impact of Digital Lending Platforms on Customers in India

Volume 11, Issue 1, 2026

International Journal of Commerce and Management Studies, ISSN 2456-3684

Author Name and Affiliation

Dr. Vinay W. Burange

Shri Shivaji Arts & Commerce College Amravati.

Abstract

Digital lending platforms have emerged as a significant component of India’s financial ecosystem in recent years. With the rapid advancement of financial technology (FinTech), the process of loan application, approval, and disbursement has increasingly shifted to mobile applications and online platforms, thereby reducing the need for physical visits to traditional banking institutions. These platforms offer expedited, paperless, and user-friendly lending services to individuals as well as small and medium enterprises.
Furthermore, digital lending has contributed substantially to financial inclusion by expanding access to credit for individuals who previously faced barriers in accessing conventional banking services. By leveraging alternative data and digital verification mechanisms, these platforms have enabled broader participation in formal credit markets.
However, despite advantages such as speed, operational efficiency, and convenience, digital lending platforms also present certain challenges. Issues related to relatively high interest rates, data privacy and security concerns, regulatory compliance, and the potential risk of fraudulent practices remain critical areas of concern.
The present study seeks to examine the concept and evolution of digital lending platforms in India, analyzing their growth trajectory, benefits, and associated challenges. It further evaluates their impact on customers and the traditional banking sector. The findings underscore the transformative role of digital lending in reshaping the conventional lending framework and redefining credit delivery mechanisms within the Indian financial system.

Keywords

Digital lending, online loan services, mobile banking, customer satisfaction.

References

Arya, V., & Sharma, H. (2024). Digital lending and its financial implications: Insights from Indian commercial banking sector. SMART MOVES Journal IJOSCIENCE, 10(1), 6–13. https://doi.org/10.24113/ijoscience.v10i1.536
Arya, V., & Sharma, H. (2023). A comprehensive review of digital lending and financial performance in India’s banking sector. SMART MOVES Journal IJOSCIENCE, 10(2), 1–8. https://doi.org/10.24113/ijoscience.v10i2.537
Kumari, S. P., & Mohanty, M. (2024). Online peer-to-peer (P2P) lending: A systematic literature review using bibliometric analysis. Prabandhan: Indian Journal of Management, 17(7), 57–79. https://doi.org/10.17010/pijom/2024/v17i7/173637
Khan, S., Singh, R., Laskar, H. R., & Choudhury, M. (2025). Exploring the role of digital financial literacy in the adoption of peer-to-peer lending platforms. Investment Management and Financial Innovations, 22(1), 369–383. http://dx.doi.org/10.21511/imfi.22(1).2025.28
Sharma, S. (2024). Digital disruption in banking: A comparative analysis of neo banks and traditional institutions. International Journal of Management and Development Studies, 13(3), 1–12. https://doi.org/10.53983/ijmds.v13n3.001
Singh, S., Sinha, S., & Sahdeo, R. (2025). Evaluating the impact of digital lending platforms on customer satisfaction in NBFCs. International Journal of Latest Technology in Engineering Management & Applied Science

Download PDF