EMI Financing Grows Ten Times Among Residents Of Tier-III Towns In 2018-19, Shows Survey

EMI Financing Grows Ten Times Among Residents Of Tier-III Towns In 2018-19, Shows SurveyA bank staff member counts Indian 500 rupee notes to give to customers. (INDRANIL MUKHERJEE/AFP/Getty Images) 

A survey published by online consumer lending platform ZestMoney has revealed that residents of Tier III cities constituted 46 per cent of all EMI borrowers in 2018-19, reports The Hindu BusinessLine. The numbers constitute a ten times rise in financing among people from such towns.

The study was conducted based on inputs from individuals among the company’s 50 lakh odd customers.

“EMI financing is the key to enable the masses realise their aspirations without financial limitations. Tier II and III cities constitute a majority of the Indian population, and being able to cater to this section of our society is critical for the growth of fintech companies,” said CEO, ZestMoney, Lizzie Chapman.

The numbers reveal startling growth of fintech financing among even residents of smaller towns.

Chapman explained that digitally-enabled lending, combined with the power of data, had enabled her company to reach even small urban centres.

The company has made it its aim to ensure availability of financing options to some 30 crore households in the credit who do not currently have access to formal borrowing mechanisms like credit cards.

ZestMoney’s portal puts together artificial intelligence and digital banking to make borrowing more affordable and convenient for Indian consumers.