The key to Corporate lending is the future earnings while for the Personal Loans revolve around the Credit History. Personal Loans are for Short Term, shorter the better. These are mainly unsecured loans and the rate of interest here is higher than that of any other type of loan.
There has been an over 100% growth in the country’s Personal Loans portfolio in the last 3 years. Currently this book is over Rs. 3.5 lac crore (banks and NBFCs put together with private sector banks leading). Ticket size of these loans average Rs. 5 lacs.
Personal Loans are driven by technology. Data Analytics is the key here:
Benefits of Personal Loans to lenders: