There was a 12-fold increase in the volume of loan disbursement through digital mode by banks and non-bank finance companies (NBFCs) between 2017 and 2020, a RBI panel report said.
According to the findings by a working group constituted by the Reserve Bank of India (RBI), between 2017 and 2020, the quantum of loans disbursed, rose from Rs 11,671 crore to Rs 1,41,821 crore, i.e. a 12-fold rise.
A bulk of loans disbursed by these entities were personal loans, followed by loans to small and medium enterprises (SMEs), the report further said.
Also as per the findings of the report, there were approximately 1,100 lending apps in the country, between January 1, 2021 and February 28, 2021.