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Demand seen emerging from in-store shopping across whitegoods and electronics 
Pent up demand and moderation in inflation drive consumer demand

Mumbai: The Indian retail loan industry is witnessing a clear revival of growth momentum after nearly two years of stagnant sales as consumers’ intent toward discretionary spending increases ahead of the festive season. Recording an 84 percent surge in retail loans from in-store shopping, Lentra, the leading consumer lending cloud platform catering to more than 50 banks and financial institutions, processed more than 1.2 lakh applications on August 15 alone, up from 65,000 on the same day in 2021.

Expecting the demand to balloon further during the festive season, Lentra forecasts a 3x growth in consumer loans with average applications processing time hitting nearly 15 applications per second this Dhanteras.

Lentra saw a bulk of the demand originating from in-store shopping across product segments across whitegoods and electronics, such as refrigerators, washing machines, and mobiles phones. Interestingly, the average ticket size of consumer loans also increased from INR 13,500 in 2021 to INR 15,500 in 2022, indicating a higher buying propensity and improved consumer sentiment around the festive season.

A large portion of consumer spending is driven by pent-up demand, moderation in inflation, and the fact that this will be the first festive year without any restrictions. Simultaneously, the robust demand for consumer loans can be attributed to instant loan approval and disbursal and the integration of Straight Through Processing (STP) in the lending lifecycle. Here, Lentra is leveraging API-enabled loan processing to enable banks and financial institutions to process loan applications in seconds using automation and Machine Learning (ML).

Sandeep Mathur, Chief Revenue Officer, Lentra said, “We are witnessing impressive bounce back in retail loans as melting uncertainties, improving economic sentiment, and boosting incomes collectively revive consumer demand. Additionally, as brands try to woo consumers with offers and discounts, it will accelerate the demand for consumer loans. At this point, Lentra’s technology prowess and the loan processing capabilities of its future-ready platform are enabling consumers to opt for hassle-free purchases. With these renewed trends, Lentra remains committed to empowering lenders to fuel the dreams of millions backed by technology and innovation.”

With a volume of more than 50 million applications, Lentra has a proven peak, handling more than 60,000 concurrent users. The cloud platform is highly scalable with a capability to handle more than 1100 API calls/second, making it one of the most preferred digital lending solutions for financial institutions.

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