The study involved the data of 482 thousands of customers who have used the company’s online lending service in India in 2019. According to the findings, urbanization is the main factor driving the penetration of online financing solutions. Thus, the index of Maharashtra in the study is 9.73. It means that even considering the large size of the population, local people have a significant need in online financing and use relevant services 9.7 times more often than on average in the country. The fact that the majority of potential customers live in urbanized Mumbai and Pune supports the figure. Being second in the world by population density, Mumbai represents 71.4% of the company’s users in India. Pune follows with 16.3%.
Far less crowded Chandigarh, which meantime has the highest income per head, takes second place with a rate of 1.9. As well as in Maharashtra, substantial urbanization in Chandigarh supported by high penetration of the Internet and mobile technologies, advanced adoption of digital technologies have altogether led to enhanced consumption and demand for consumer loans. Even though other states are lagging significantly, it provides vast prospects for further penetration of short-term online loans both in large cities and smaller areas.