August 20

Viewpoint: COVID-19 Lockdown: How Digital Lenders Can Contribute To Financial Inclusion in India

By Madhusudan Ekambaram

Financial inclusion has always been a critical goal of the Government of India’s economic policies. It can pave the way for India’s unbanked and underbanked population into the mainstream economic system, giving them equal access to financial services at an affordable cost, thereby reducing income inequality across the society. An essential criterion for financial inclusion is easy access to adequate credit for micro-borrowers who are otherwise unlikely to receive it from formal lending channels. In this socio-economic reality, digital lenders have a significant role to play, by creating alternative lending channels for the traditionally underserved population, and championing the cause of financial inclusion.

Photo courtesy of DIVatUSAID.

Source: Financial Express (link opens in a new window)

Coronavirus, Finance, Technology
financial inclusion, lending