Rise of illegal digital lending applications led to a wave of frauds

Digital lending sector in India has grown by leaps and bounds and attracted a number of scammers that push illegal digital lending applications (DLAs) to the market.

Most borrowers take small value personal loans from fintechs. Around 35 percent of loans are worth less than ₹25,000. Loans which are worth between ₹25,000 to 50,000 are nearly 14 percent and the remaining 51 percent of loans are worth more than ₹50,000.