Digital India is an umbrella program which will transform India into a digitally empowered knowledge economy, the significant ambition behind this campaign has various initiatives but the foundation is cloud computing and connectivity. Digital information begins with people and not technology so creative expression and communication with the mass through articles and websites is no longer sufficient. The interaction between business and customers, school and its fellow students, government and its citizens is what will accelerate this towards success. To have an impact on business sectors, public sectors must deliver highly customized, personalized engaging experiences to every citizen and understand what each citizen want to accomplish. In order to make this program powerful, citizens everywhere need easy access to information, distinct understanding of their rights and responsibilities and the ability to transact easily with every form of government.
Through Digital India programmes, some digital finance companies provide P2P services like short-term payday loans, online payday loans, same day cash loans are hassle free, trustworthy and are extremely secure to borrow money for short term emergencies.
There are various categories of the digital lending services
Short term loans are very beneficial if you can pay them back on time. These services help you at those situations when you are extremely broke. e.g at the end of the month when you are salary is yet to be dropped in your account or having some urgent requirement and are in need to strengthen your financial condition for some days till situation gets better. These immediate loans can keep you solvent and financially afloat when you have bills to pay, and short term loan is still a week or two away.
Emergency Loan is an unsecured short term loan basis system. Same day cash loans are created with an intention of making emergency funds available to as many people as possible at the earliest hour. Although cash loans tend to have higher rates of interest than usual loans, they are quick and are accessible to individuals with bad credit. It has gained much popularity nowadays. Erstwhile traditional types of bank loans were in high demand in the market. But, with the advent of digital loans people’s interest has shifted towards them.
Offline payday loans are quick but not instant just like the banks. In such circumstances, online payday loans come to our very rescue. They are being favored in the major cities where people are extremely busy throughout the day and are not able to visit the banks and spend hours filling out the forms.
Data access and quality: Unlike developed markets, there are loopholes in financial and operational data availability in India. Lending start-ups, for example, have built impressive credit underwriting models but require regular access to high-quality data to have the proper impact. There are two issues to be resolved, one being the ambit of coverage and other is the data access.
At par with the banks: Indian banks are not fading away anytime soon. The reality for any fin-tech startup is the need to work with a range of banks and financial institutions. They need a fine understanding of and access to Indian banking systems, the various laws under RBI and also have to create a platform for themselves from dozens of other start-up peers who are lining up with the same requirements. This calls for both sales skills and domain understanding.
Law: Both the government and the RBI support start-ups and encourage the start-up action plan. Having that said, complying with the regulatory maze and securing licenses can sometimes be challenging for start-ups.
Fiduciary Relation: Banks may have a humongous number of inefficiencies and are often lagging in technology. However, consumers have an inevitable trust in them which is lacking in Startups. Start-ups will need to win this trust by ensuring a high quality, transparent and safe transaction experience and raise significant capital to build a national brand and a broad set of services.
At present, digital lending is less than 2% of the market today. Thus bringing awareness and by overcoming these non-trivial challenges, this program can be more successful.