Lending Tech: The Paradigm Challengers | Ambit & Praxis Global Alliance

The next credit cycle is being driven by the emerging households of Tier-2 and Tier-3 India. This report explores how tech-native lenders are scaling credit through co-lending models and purpose-led designs.

 

• Impact-Driven Credit: Designing products like zero-interest medical loans to reduce household financial vulnerability.
• Co-Lending Models: Bank-NBFC partnerships are the new capital engine, cutting NBFC funding costs from 9.5% to 8.5%.
• The Bharat Engine: Tier-2 and Tier-3 cities account for nearly 79% of FinTech-led loan disbursements.
• Hybrid Operating Models: While 50% of home loans are expected to be fully digital by 2027, high-value decisions still rely on a blend of digital front-ends and human risk anchors.