In a country like India where only one in seven residents gets access to credit, a lending platform, Credy, seeks to expand the personal lending ecosystem by digitizing the complex and slow application and approval process. Buoyed by a string of major reforms, including Aadhaar I.D. system and the recent demonetization drive, Credy is hopeful that the personal lending market in India can dramatically expand from its current $50 billion valuation.
The company, set up by former Goldman Sachs employees, plans to digitize the entire application process, link it to an individual’s digital I.D. and use the credentials for instant approval of personal loans, writes Tech Crunch.
The company acts as a platform connecting the borrowers with personal lenders and has processed approximately $3 million of loans to date, notes Gongsters. Digitizing the loan application, verification and approval process can be a game-changer in a sector that crawls at snail-pace given the tedious paperwork, which may go on for weeks or even months at times.