LoansJagat’s rates start around 15% and can come down to about 9.9%. What decides where a customer falls on that range?
There are four things that decide where a customer lands in that range, and we walk every customer through them upfront.
Credit score: A strong CIBIL score, in the 700 to 750 range and above, moves a borrower toward rates closer to 9.9%. A weaker score pulls the offer toward the higher end of the 15% limit.
Income and employment type: A government employee or someone at a large, stable company usually gets a better rate than a self-employed applicant, since predictable income lowers the lender’s risk assessment.
Existing debt load: High credit utilisation or several running EMIs signal risk to a lender, even when the score looks decent.
Partner lender policy: Each of our 50-plus banks and NBFCs applies its own underwriting rules so that identical profiles can receive different offers from different partners.
We run each profile against all our partners, so the customer sees where they genuinely land, not one advertised number.
How does LoansJagat make sure a customer doesn’t fall back into the same debt trap?
A smaller EMI rarely fixes the spending habit that built the debt in the first place, so we treat consolidation as a starting point, not a solution.
Close old cards, don’t just clear them: We advise customers to close credit cards once cleared, rather than leave them open at zero balance, since an unused limit still carries risk.
A separate EMI account: We recommend a dedicated account with auto-debit for EMIs, so a payment date is never missed.
A cooling-off period on new credit: We discourage fresh unsecured borrowing entirely for the first several months after consolidation.
Eligibility built for stability: We require income above ₹30,000 a month, a year of work history, and a score above 700 before a loan is offered.
Consolidation resets the debt. What a customer does in the months after is what actually determines whether it holds.
About 30-35% of your customers are Gen Z, mostly aged 23-28. Why do you think so many young people already have multiple loans or credit card debt?
This pattern shows clearly in national data, not just in our own customer base.
TransUnion CIBIL’s latest whitepaper found that half of India’s new-to-credit-card users are now 30 or under, up from 43% just four years earlier. More significantly, 28% of Gen Z cardholders had already crossed ₹25,000 in balance within three months of getting their first card, compared with 20% of millennials at the same stage in 2018.
Several forces are driving this shift among young borrowers:
- Frictionless access: A card or a small personal loan once required a week of paperwork. Now it takes an app download and a photo-based verification, which removes the pause that once came before taking on debt.
- Low financial literacy: Many borrowers understand their credit limit but not their effective interest rate, and this gap allows small debts to compound into large ones before the impact becomes visible in their EMI.
- Social and festive spending pressure: Festive sales and lifestyle spending push credit from a backup option to a default choice, often before income has caught up.
Most of these customers aren’t reckless. They simply started borrowing before anyone taught them how to manage it.
How does technology allow LoansJagat to serve customers across 50-plus cities and 10,000-plus PIN codes without a large branch network?
The key advantage is that we don’t need to build a physical branch network to reach customers. We leverage a digital infrastructure that already operates at a national scale, allowing us to serve customers across cities and smaller towns through a single technology-led platform.
Remote KYC: Aadhaar KYC and video KYC validate the customer’s identity through remote methods and eliminate the requirement for visiting branches.
Paperless application flow: Our fully paperless process takes a customer from document upload to lender match in a single sitting.
AI-backed matching: Our AI layer reads borrowers’ income, EMIs, credit score, and repayment history together, then matches them to 50-plus partner banks and NBFCs with realistic approval odds, cutting repeated rejections and credit-score hits.
Standardised data rails: The RBI’s Unified Lending Interface standardises how platforms and lenders exchange borrower data, turning a paper trail into a simple app upload.
Encrypted document transfer: Files move directly to the lender’s system through secure channels, with no physical handoff between cities.
A customer in a smaller town gets the same speed and comparison as one in a metro. Branches added cost without adding accuracy, and this pipeline replaces that function.
As more digital lending options enter the market, does LoansJagat expect the problem it solves to get bigger or smaller?
We expect the problem to get bigger, at least over the next few years, as digital lending continues to expand and borrowing becomes faster and more accessible.
India’s digital lending market has grown nearly 13 times in five years and is projected to account for around 20–21% of personal loan sanctions by FY2031. At the same time, repeat borrowing is becoming increasingly common, with nearly 69% of digital borrowers having taken more than one digital loan.
The issue is not simply that people are borrowing more; it is that borrowing is becoming increasingly fragmented. A customer could have multiple loans across different lenders or apps, while no single lender necessarily has a complete view of their overall obligations. Faster digital approvals can make this problem more pronounced by making it easier to accumulate multiple loans.
That is the gap LoansJagat is built to address. As the lending ecosystem becomes more fragmented, there is a growing need for a platform that gives borrowers a consolidated view of their debt and helps them identify more manageable repayment options. So, rather than reducing the problem, the growth of digital lending is likely to make the need for debt consolidation and better borrowing visibility even more relevant.
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