The Digital Lending Distribution Landscape – Tier 2 and Tier 3 Cities in India

The Indian lending landscape has changed drastically over the years due to the rapid adoption of digitization in the BFSI industry in tier 2 and tier 3 cities. While the traditional form of lending still prevails in many parts of the country, the benefits provided by the digital solution providers are increasingly paving the way for the adoption of digital lending solutions and services across the enterprises. 


In recent times, the Indian market has witnessed an exponential surge in demand for short-term loans related to purchases and spending in tier 2 and tier 3 cities. This can be ascertained from the fact that around 11 Mn credit cards were issued in India in the last financial year (April 2021 – March 2022). The number of credit cards in India are growing at a compounded annual rate of 24% (2013-2019) as credit-based purchases become more common even in semi-urban areas. 


India’s lending space is witnessing a tech-tonic shift with loans and credit cards increasingly being disbursed through digital means in recent years. Over 6% of all loans given by commercial banks from April – December 2020 were digital, a marked jump from less than 1.5% in 2016-17, said a report by the Reserve Bank of India (RBI). 


Additionally, India’s digital lending start-ups have a credit-ready and untapped addressable base of 120 Mn customers comprising of formally employed Indians without a credit card. 



Credilio India, a Leading Digital Lending conglomerate is revolutionising the digital lending distribution in the country. Established in 2020, we already have a pool of 15,000+ advisors selling Credit cards, Credit line cards and Personal loans to more than 2,00,000+ customers pan India. The Credilio Pro app enables a financial advisor to avoid miss selling and populates the bureau reports which can enable the advisor to sell the right kind of product to the right customer. We are enabling an advisor to become Tech Savvy by using our machine learning engine and transforming them from a DSA to Fintech DSA by training them through our repository of training videos on products.  


“Credilio has worked on a business model which is driving the growth of the market, changing consumer expectation and behaviour due to the several benefits offered by the digitization of banking and financial services”, quotes Aditya Gupta, CEO, Credilio 


What is transforming the Digital Lending Distribution in Tier 3 cities in India 


According to Aditya Gupta, CEO of Credilio below are the few insights driving the paradigm shift in digital lending distribution 


Customisation: Today a Financial Advisor can push credit products to a customer as per his credit worthiness. With our Machine learning and intelligence, the Credilio Pro app provides intelligence to advisors for smart and efficient selling. Moreover, the digitization of lending started with the need to overcome the traditional pain points (extensive, time-consuming, manual, and complicated) in the lending process. With the Credilio Pro App, the lending process has become paperless,faster and more efficient than traditional mediums. 


The Power of Bureau:  A customer’s credit worthiness is a paramount indicator of what credit products can be marketed to him. Credilio Pro App enables an Advisor to know the bureau standing of a customer and offer the right product. 


Training:  Most of the DSAs are used to selling credit products conventionally and are not equipped with different selling policies of the Banks/NBFC’s. This sometimes hinders the sales process for Advisors. The Credilio Pro App has a library of training videos on products which help the advisor sell the right products and earn more.  


Tech and Intelligence: Artificial intelligence and machine learning are also changing the face of the lending sector. Massive amounts of data are now available to be crunched on every applicant which leads to a higher, more accurate approval rate for buyers, lower loss rates for lenders and shorter times to funding. 


Shift in Consumer Behaviour: Indian consumer behaviour has also seen a monumental shift over the past decade. The middle class is becoming aspirational and is looking at means to help them acquire products and experiences. This is where the Credilio Pro App offering comes into play, and bridges the gap between Aspiration and Affordability. 


The digital lending market is at its prime, and the demand forecasts are proving to be a big challenge for the lenders. They say the bigger the challenge, the bigger the opportunity: Lending is a huge opportunity and has seen significant signs of disruptive innovations. Of course, there are exciting times ahead for the lending industry. 


Finally, by becoming more customer-centric, the digital lending market can improve customer acquisitions.  



The views expressed in the content belong to the author of this blog. 

All statistics have been derived from external sources. 

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