Digital lending for India’s next billion: Interview with Ram Karan Soni, Director, Ram Fincorp

By Vriti Gothi

Digital lending is redefining access to credit for India’s middle class, gig workers, and first-time borrowers who have traditionally been underserved by banks. Ram Fincorp, leveraging AI-driven risk assessment and alternative data, is enabling fast, transparent, and inclusive lending without relying solely on traditional credit scores. By combining technology, fairness, and financial literacy, the company is not just disbursing loans it is building lasting trust and empowering a new generation of aspirational borrowers, helping India move closer to its $5 trillion economy goal.

Digital lending is often seen as a breakthrough for financial inclusion. How do you see it reshaping credit access for India’s middle- and working-class population, especially those traditionally excluded by banks?

Digital lending is changing how India’s middle-class and working-class people can access credit. These groups have often been neglected by traditional banks. At Ram Fincorp, we believe our real value is in reaching the underserved population. We view it as a strong force for financial inclusion. Instead of relying only on traditional banks for CIBIL scores, we can use alternative data and AI-driven risk assessment to evaluate borrowers’ bank history. This allows us to extend credit to salaried professionals, gig workers, and first-time borrowers who would otherwise be excluded from traditional banks.

We have seen firsthand how responsible, tech-driven lending can build both trust and financial stability. For us, digital lending is not just about speed; it is about fairness, transparency, and creating opportunities that enable individuals to grow while contributing to India’s financial inclusion transformation.

With the rise of digital platforms, what changes have you observed in borrowing habits among salaried professionals, gig workers, and first-time borrowers?

With the rise of digital platforms, borrowing habits among salaried professionals, gig workers, and first-time borrowers have changed drastically, and now it is more about convenience and speed while maintaining transparency and safety. Borrowers today expect that they should get access to credit fast without any hassle of documentation and paperwork, something that traditional banks lack and struggle to deliver. We have observed that salaried professionals increasingly use digital credit or short-term financial services to manage monthly or emergency payments without having a burden and relying on approval cycles from banks. For gig workers, digital lending has become a lifesaver. Many of them were excluded from traditional banks due to a lack of credit or a low CIBIL score. First-time borrowers want a platform that not only provides quick access to loans but also values transparency and speed.

Overall, because of digital platforms, borrowers are shifting from being need-driven to becoming more planned, confident, and inclusive.

As RBI continues to tighten norms on responsible lending, how can the digital lending industry strike the right balance between expanding financial inclusion and managing risks responsibly?

As RBI continues to tighten norms around transparency and data privacy, we believe this is a positive step for the long-term credibility of the digital lending ecosystem. Our approach has always been to balance innovation with responsibility. Expanding financial inclusion comes at the cost of borrower trust, and that is why we go beyond traditional credit scores to evaluate repayment capacity through alternative data collection and AI-driven risk management. Along with this, transparency is non-negotiable, and clear communication of loan terms, fair pricing, and making sure that borrowers fully understand their obligations are integral.

​​These guidelines highlight important priorities, including upfront loan term disclosures, strong grievance procedures, real-time transparency through digital lending app registration, and data protection compliant with India’s personal data regulations. For us, we aim to make it easier for first-time borrowers, gig workers, and salaried professionals to obtain credit without ever sacrificing borrower safety or clarity.

This balance, in our opinion, is essential to responsible growth: using AI to widen access while adding safeguards that protect borrowers at every digital touchpoint. By integrating our systems with RBI’s changing framework, we are not just disbursing loans; we’re building lasting credit relationships based on openness, fairness, and security

Your model relies heavily on alternative data and machine learning. Could you share how these innovations are helping you evaluate creditworthiness more effectively than traditional lenders?

A poor or nonexistent CIBIL score is one example of an outdated system that Ram Fincorp has deliberately chosen not to follow, and let that not decide someone’s financial future. This is where machine learning and alternative data models are useful. A considerably more accurate and equitable picture of a person’s creditworthiness is produced by our AI-powered algorithms by examining digital footprints, income patterns, repayment histories, and other non-traditional data sources.

Over 40% of our applications are accepted in less than a minute, which is far faster than industry standards. The results speak for themselves. More significantly, by taking this strategy, we are able to incorporate first-time borrowers, gig workers, and salaried professionals who would not otherwise be accepted by traditional banks.

Everything about the process is digital, like there is no paperwork, decisions are made instantly, and rates and payback terms are entirely transparent. No hidden fees, no jargon. For us, it means creating long-term financial inclusion; for clients, it means speed and confidence. In many respects, we regard ourselves as facilitators of credit journeys that enhance lives rather than merely lenders.

As India moves toward a $5 trillion economy, what role do you see Ram Fincorp playing in empowering the aspirational middle class and bridging the credit gap?

Ram Fincorp sees itself as a key player in enabling the aspirational middle class and closing the credit gap as India moves closer to its $5 trillion economic objective. Established in 2020, we are fueled by an innovation-led, digital-first strategy while maintaining the trust of R.K. Bansal Finance’s ten-year history.

Redefining loan access for the next generation of borrowers, first-time borrowers, gig workers, and salaried professionals who have historically been mistreated by established financial systems is our straightforward goal. Not only do we approve loans more quickly, but we also give people with poor or no CIBIL scores access to opportunities by utilizing alternative data and machine learning-powered algorithms. In addition to being a lender, Ram Fincorp is a force for economic empowerment. At the intersection of impact and innovation, it is transforming the way credit works for millions of people.

With its customer-first mentality, cutting-edge technologies, and commitment to trust, Ram Fincorp is revolutionizing the lending industry one loan, one life at a time.