Can India’s DPI Unlock Credit for 450 Million Borrowers?
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Synopsis
Unlocking the potential of India’s Digital Public Infrastructure (DPI) can provide credit access to 450 million previously underserved borrowers. Leveraging Aadhaar, UPI, and ULI can transform the lending landscape, offering a frictionless experience. This article explores how these innovations are shaping the future of credit in India.
Key Takeaways
- India’s DPI can unlock access to credit for 450 million borrowers.
- Aadhaar-based onboarding significantly reduces costs.
- UPI averages Rs 77,000 crore in monthly payments.
- Collaboration is vital for sustainable innovation.
- Fintech NBFCs are leading personal loan volumes.
New Delhi, Oct 27 (NationPress) India’s Digital Public Infrastructure (DPI), which includes Aadhaar, Unified Lending Interface (ULI), and Unified Payments Interface (UPI), presents a significant opportunity to extend credit access to 450 million previously untapped borrowers, according to a report released on Monday.
The report, issued by the Fintech Association for Consumer Empowerment (FACE), a RBI-recognized self-regulatory organization in the fintech landscape, emphasizes how India's DPI has revolutionized the onboarding, underwriting, and collection processes of lending through a consent-driven, paperless, and app-first approach.
As indicated in the report, fintech NBFCs are responsible for 74% of personal loan volumes for FY 2024-25, with Aadhaar-based onboarding achieving remarkable scale—over 39 crore e-KYC transactions processed each month.
The analysis reveals that Aadhaar-based e-KYC, DigiLocker, and eSign have slashed onboarding costs from $23 to $0.5. The Account Aggregator framework has facilitated the underwriting of over 189 lakh loans, while UPI supports more than 151 million debt collections monthly.
It underscores the necessity for enhanced collaboration among regulators, financial institutions, and innovators to foster sustainable adoption.
According to Sugandh Saxena, CEO of FACE, “India’s DPI has transformed smartphones into a credit gateway, integrating millions of underserved customers and unmet credit requirements into the formal credit landscape. By incorporating frictionless onboarding, transactions, and real-time data sharing, DPI is establishing digital lending as the default option, thereby streamlining access to formal credit.”
He further stated, “Continued growth and market demands will necessitate further innovations and enhancements in DPIs, including the utilization of Aadhaar, UPI, ULI, and CBDC to offer convenient, safe, and tailored credit solutions to 450 million untapped borrowers.”
Regarding seamless repayments, FACE pointed out that of the over 491 million UPI users, collections and EMI payments average Rs 77,000 crore monthly via UPI and Rs 15,521 crore monthly through BBPS.
Point of View
It is evident that India's Digital Public Infrastructure represents a substantial leap towards enhancing financial inclusion. The integration of Aadhaar, UPI, and ULI can bridge the gap for millions of potential borrowers, fostering a credit ecosystem that is both accessible and efficient. This initiative aligns with our commitment to empowering citizens through technology and innovation, supporting the nation's economic growth.
NationPress
30/10/2025
Frequently Asked Questions
What is Digital Public Infrastructure (DPI)?
DPI refers to the digital systems and frameworks like Aadhaar, ULI, and UPI that facilitate seamless financial transactions and access to services.
How many borrowers can benefit from India's DPI?
Approximately 450 million untapped borrowers stand to benefit from India's Digital Public Infrastructure.
What role does Aadhaar play in credit access?
Aadhaar enables secure and efficient onboarding through e-KYC, significantly reducing the costs and time involved in the lending process.
What are the benefits of UPI in lending?
UPI facilitates quick and easy debt collections, supporting millions of transactions every month, thereby enhancing repayment efficiency.
Why is collaboration important in this context?
Collaboration among regulators, financial institutions, and innovators is crucial to ensure sustainable adoption and to foster an inclusive credit ecosystem.
