Role of Digital Lending Platforms In Enhancing Access To Formal Credit

Abstract

Digital lending platforms have changed the way people borrow money, making the loan process faster, easier, and more convenient. Instead of visiting banks, filling out many forms, and waiting for approval, people can now apply for loans through mobile apps and websites from anywhere. These platforms have become popular because they save time, require less paperwork, and provide quick access to formal credit. The main purpose of this study is to understand how digital lending platforms help people get formal loans and to identify the factors that influence their decision to use these services. The study also looks at how digital lending supports financial inclusion by helping more people access credit. The study is based on primary data collected from 108 respondents through a structured questionnaire, and the data was analyzed using descriptive statistics and regression analysis. The findings show that digital lending platforms make borrowing simple, quick, and easily available for many users. The study also found that trust, security, regulatory compliance, and risk are the main factors that affect people's willingness to use digital lending platforms. At the same time, many users still have concerns about data privacy, online fraud, hidden charges, and a lack of knowledge about digital lending services. Overall, the study shows that digital lending platforms play an important role in improving access to formal credit, especially for young and technology-friendly users. The study suggests that increasing financial awareness, improving security, and making lending services more transparent can help build customer trust and encourage more people to use digital lending platforms in a safe and responsible way.