Credit demand reviving, but fintech lenders struggle to raise low-cost debt

Mumbai: Fintech lenders are struggling to raise low-cost debt, even as demand for credit is gradually reviving.

The reason: banks have increased risk premiums due to stress on their books amid the Covid-19 pandemic and a lack of clarity over whether a moratorium on loans would be extended.

Capital Float, Lendingkart, Zest Money and Indifi are among the top fintech lenders in the country. Paytm, PhonePe, Razorpay and Mobikwik also offer credit to customers in partnership with banks.

The country’s growing fintech lending ecosystem is fragmented – both in terms of business models and how they access capital.