Unsecured personal loans have become a game-changer in the Indian financial landscape. Witness a staggering four-fold increase in outstanding balances between March 2017 and March 2023, according to a report by Care Ratings. This translates to a jump from Rs 4.26 lakh crore to a whopping Rs 13.32 lakh crore [Economic Times]! This translates to a compound annual growth rate (CAGR) of around 21%.
Unsecured Loans: A New Normal
This surge has significantly impacted the credit market. Unsecured loans now constitute nearly one-third of all personal loan credit offered by banks and NBFCs combined [CARE Ratings]. This highlights a significant shift towards a more accessible credit system.
Fuelled by Fintech and Demand
The rise of fintech companies and digital lending platforms streamlined the process, making it faster and easier to access funds. This, coupled with the growing demand for credit to manage various expenses, likely fuelled the boom [CARE Ratings, Business Standard].
The Digital Advantage
Gone are the days of lengthy bank applications.
In the current digital era, getting a personal loan is a piece of cake. Platforms like TeziPay offer features like:
- Minimal paperwork: Compared to traditional bank loans, TeziPay reportedly requires minimal documentation.
- Quick approvals: The application process is said to be quick and can be completed in just 15 to 20 minutes.
- Online application: Apply for a loan from anywhere with an internet connection, offering flexibility.
- Fast disbursal: Once your loan is approved, TeziPay might disburse the funds quickly.
- No collateral required: As with most unsecured loans, you don’t need to showcase any assets.
- User-friendly interface: TeziPay’s platform is reportedly designed to make the application process smooth and easy to navigate.
Looking for an unsecured personal loan?