Yogi Sadana of Zype advises that improving your credit history can result in better credit products and terms in the future

The digital lending ecosystem has seen significant growth and change, making it easier for borrowers to access credit. Yogi Sadana, Founder and CEO of Zype, emphasizes the importance of verifying that a loan app is partnered with an RBI-registered NBFC or bank before borrowing. In an interview with MintGenie, Sadana advises borrowers to focus on building a better credit history to secure better credit products and terms in the future.

The shift towards digital lending has improved credit accessibility, leading to more convenience for borrowers and increased inclusion for underserved users. This has also resulted in a rise of personalized credit products tailored to different customer needs. Sadana encourages borrowers to take advantage of this shift by choosing products that meet their individual needs and using them to build a better credit history.

When it comes to choosing the right lender, Sadana advises that customers use the digital lending ecosystem to compare products, tenures, and eligibility easily. Additionally, he suggests checking the experiences of other customers before borrowing from a specific lender or loan app.

However, with the growth of the digital lending market, the risk of fraud has also increased. Sadana urges borrowers to verify a loan app’s partnership with an RBI-registered NBFC or bank and to only install loan apps from the Google Play Store or Apple App Store to avoid falling victim to fake loan apps and sites.

Looking to the future, Sadana anticipates substantial growth in credit line products, as well as embedded finance due to their flexibility and frictionless nature. He believes that the growing fintech ecosystem in India will continue to bridge the gap between demand and supply for unmet credit needs, especially in the near prime and medium value loan segments.

As the fintech ecosystem continues to grow, it is expected to meet the increasing credit requirements in India, driven by the rise in the middle class and their growing aspirations for affinity products and experiences. The demand for credit is set to increase as consumerism rises, indicating growth for the digital loan sector in India in the coming years.