The Future of Fintech and Lending in India

The Reserve Bank of India has allowed for something which is called the default loss guarantee in the digital lending space. Now this is an arrangement where a third party like a fintech player will compensate the lender if the borrower defaults. So from the fintech's perspective, offering DLG is a way to show off their underwriting skills. From the lender's perspective, it ensures that the platform has some skin in the game.