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Why Indian lenders are giving loans to risky customers with low credit scores

Nupur Anand
Why Indian lenders are giving loans to risky customers with low credit scores

Getting an unsecured personal loan has become easier than ever in India. Lending practices have eased over the past two or three years, experts say, due to three reasons: more banks pursuing retail customers as corporate loans turn soar, proliferation of non-banking financial companies (NBFCs), and the advent of online lending platforms (fintech companies) catering mostly to urban millennials. A low credit score is no longer a major bugbear for lenders as they vet applications from potential borrowers.