Digital lenders use tech to improve SME loan repayments amid lockdown

These fintech firms are using past payment behaviour and current transactions to validate customers facing genuine difficulties

Given the likelihood of repayment delays by small and medium enterprises following the 21-day lockdown implemented to contain the spread of coronavirus, digital lending start-ups in the country have begun upgrading their technological capabilities to enable borrowers to service their loans on time without any physical interface. 

"Due to the disruption caused by the current lockdown, we do see some of our clients facing temporary difficulties in repaying their loans," said Alok Mittal, managing director and CEO of Indifi. The start-up may validate such cases based on data points such as past payment behaviour, current transaction trends and other information,