Majority of Indian Borrowers Lack Clarity on Data Privacy, Says Report

By Sunil Sonkar
2 Min Read
Majority of Indian Borrowers Lack Clarity on Data Privacy, Says Report

A recent report suggests that a significant 88% of borrowers in India lack a clear understanding of data privacy rules and only 18% having a grasp of the subject.

The research asked 1,842 people aged between 18 and 55 who earns around Rs 31,000 a month in 17 Indian cities. It discovered that 60% of these people are worried about how lending apps gather and use their personal information. A notable 58% among the worried borrowers feel that these apps collect more data than necessary.

The report shows that younger people and those from smaller towns are more worried about how much data lending apps are collecting. In metro cities, 78% of borrowers from Chennai expressed concerns about data collection practices.

Ashish Tiwari, Chief Marketing Officer at Home Credit India, mentioned that the survey not only tells us what borrowers like but also shows the need for more awareness about keeping personal information private.

The report showed that more people are starting to get loans online instead of using other methods. Loans initiated through telecalling increased by 3%, reaching 19%, while loans through POS/bank branches saw a decline from 56% to 51%.

In response to the digital shift, 51% of borrowers expressed interest in completing their future loan applications entirely through mobile apps, without physical interaction with POS/Banks. This preference was particularly strong among younger, aspirational borrowers in small towns.

Digital literacy findings indicated that 23% of middle-class borrowers have heard/seen chatbot services, with 43% finding them easy to use.

The report said that WhatsApp is becoming a popular way to get loans and 59% of borrowers get loan messages on WhatsApp. However, only one-fourth of borrowers consider loan offers received on WhatsApp trustworthy.

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