Did you know that NBFC credit grew by 20.8% last year? Over 60% of this demand came from smaller towns. In fact, 1 in 3 personal loans in non-metros is powered by NBFCs.
By 2026, 50% of loans will be digital—faster approvals, quicker payouts, endless growth.
But here’s the problem: while loans are being disbursed, repayments are falling behind.
Outdated collection systems just don’t work for today’s customers, and if things don’t change, your business growth could take a hit.
The fix? Smarter collection systems built for today’s customers. Let’s find out what’s stopping repayments and how you can fix it.
Loans Are Easy. Repayments? Not So Much.
Disbursing loans is smooth now, but collecting them remains a challenge. The numbers tell the story:
Digital collections grew by 283% last year. Intent is there, but the system is broken. So, what’s causing these payment delays?
Customers are willing to pay. Here’s what’s getting in the way of repayments:
Today’s customers expect faster, seamless processes. But outdated systems fail to deliver. This hits fast-growing loan categories hardest.
A Closer Look at the Problem Areas
Many loan categories are growing fast, but with growth comes new repayment challenges. Here’s where the pain points are:
1. P2P Lending: Quick Approvals, Slow Collections
Peer-to-peer and business loans grew 30–40% last year. But smooth approvals don’t guarantee smooth collections.
1. No recurring payment setups at the start.
2. Accounts often remain unverified, delaying payouts.
3. Little engagement with customers after loan approval.
What begins smoothly often ends with missed payments and frustration.
2. Vehicle Loans: High Growth, Higher Risk
Vehicle loans in Tier 2/3 cities are booming, thanks to rising demand for two-wheelers and cars. But repayment risks are also growing:
1. Customers forget EMIs without reminders.
2. Changing contact details make customers unreachable.
3. Dealer payouts get delayed.
Without smarter collection systems, the fastest-growing segment might become the riskiest one. Businesses need to evolve with customer expectations to fix this.
How Customers Today Behave
Today’s customers expect smart, simple, and fast systems. Here’s how they’ve evolved:
1. Customers prefer UPI over cheques.
2. They respond to WhatsApp notifications, not SMS or unknown calls.
3. They want payments to feel like a simple “tap”—quick and effortless.
Customers want to pay, but outdated systems slow them down. Payments don’t need to be this hard. It’s time to adapt.
PayU Collection Stack for NBFCs
With PayU Collection Stack, make collections that match customer expectations.
1. Penny Drop & Penny-less Validation: Verify accounts before payout & reduce failed disbursals from incorrect bank numbers.
2. UPI AutoPay & eNACH: Enable recurring payments from day one.
3. Pay by Link: Use mobile-first reminders — no logins, no downloads.
4. Native OTP: Show OTP in the payment screen. No app switching needed.
5. WhatsApp Commerce: Customer pays directly in WhatsApp chat.
When collections become hassle-free, customers will pay on time—even without you asking twice!
With PayU Collection Stack, enjoy:
• 50% fewer bounces
• 40% better repayments
• 35% lower operational costs
Make effortless Collections and Grow with PayU
NBFCs are powering India’s credit growth. But without smarter collections, growth won’t last.
Let us take care of your collections so you can focus on growing your business.
Ready to transform your collections?
