Non-banking finance company InCred Finance expects the consumer lending space in India to grow by 15% to 20% annually despite rising stress in the portfolio.
Mis-selling has transformed into a digital format involving deceptive design interfaces and tactics, tricking users into taking high-cost, short-term consumer credit by posing as instant loans, the RBI deputy governor said.
Given that fintechs have mostly focussed on disrupting unsecured personal loans, consumer durable loans, credit cards and gold loans through the use of technology, the impact on them will be huge, said industry insiders.