What happened
Indian lenders deploy AI-driven underwriting systems, cutting loan decision time by 40-60%. These systems ingest multi-source data, identify anomalies, and generate explainable outputs. Underwriting previously consumed 30-50% of time on information gathering. Studies by Accenture and McKinsey indicate automated underwriting reduces processing times by 60-70% and operational costs by 30-40%, improving loan profitability over 10% in auto lending. India's credit market reached Rs 121 lakh crore by March 2025, growing 21% year-on-year.
Why it matters
Faster credit access improves borrower experience and reduces drop-offs for MSME and small-ticket retail segments. Improved risk calibration strengthens portfolio quality as lending expands into new geographies. Structured decision outputs enhance auditability and explainability for regulatory compliance. Scalable decision engines become enabling infrastructure for financial inclusion in semi-urban and rural markets. For credit managers, the role shifts from data assembler to risk adjudicator.
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