Digital lending in India: How Aadhaar, payments and account aggregators are changing credit

India's digital lending ecosystem evolved through public-private partnerships integrating Aadhaar, payment infrastructure, and account aggregators.

Aadhaar digital identity simplifies customer onboarding and verification for financial institutions.

Structured transaction records from payment infrastructure give lenders current insights into income flows and spending behaviour.

Consent-based data sharing via account aggregators improves data flow for faster lending decisions.

Digital innovations enable products like buy-now-pay-later and instant personal loans via lending apps.