Digital Credit Without Limits: A New Moneylife Foundation Study |
| Digital lending has transformed access to credit in India, offering millions of borrowers faster and easier access to formal finance. However, our interactions with consumers over the past few years have also revealed a growing number of cases involving multiple digital loans, mounting repayment obligations and borrowing costs that many borrowers struggle to understand. |
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| Many
of you have written to us over the years to share your experiences and
concerns regarding digital lending. Those interactions, together with
our credit counselling work and policy engagement, helped shape this
study. We are pleased to share it with you. Moneylife Foundation's latest report, "Digital Credit Without Limits: Why India Needs to Regulate the Cost and Count of Digital Loans", examines these issues through an analysis of credit counselling cases, the regulatory framework governing digital lending and publicly available data. |
| As digital lending continues to expand rapidly, it argues that protecting borrowers requires looking beyond disclosure to issues such as cumulative borrowing and the overall cost of credit. |
| Among the questions it explores are: |
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| It also puts forward a series of policy recommendations aimed at strengthening consumer protection while supporting sustainable growth in digital lending. Copies have been shared with the Ministry of Finance, the Reserve Bank of India, industry bodies and other key stakeholders for their consideration. |
| Read and download the report here: https://www.mlfoundation.in/ |
| We hope you will find it useful and encourage you to share it with others who may be interested in digital lending, consumer protection and financial sector policy. |
| Warm Regards, |
| Sucheta Dalal Founder-Trustee Moneylife Foundation |
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