India’s lending ecosystem is evolving rapidly as Artificial Intelligence (AI) becomes central to how credit is delivered, assessed, and experienced. Beyond automation, AI is redefining inclusion by analysing alternate data such as GST filings, UPI payments, and transaction histories to create richer borrower profiles. “AI is helping lenders move from standardisation to individualisation, understanding customers not as data points but as people,” says Jyothirlatha B, Chief Technology Officer, Godrej Capital.
Generative AI is also enabling hyper-personalised experiences through multilingual chatbots, predictive nudges, and dynamic documentation. On the backend, machine learning models are transforming risk assessment, detecting anomalies in real time, and preventing fraud before it occurs. This increased use of AI helps create a more agile and responsive lending process, empowering both borrowers and lenders to make more informed decisions.
With AI driving greater efficiency, the lending landscape is set to become even more customer-centric, focusing on personalising the borrowing experience while mitigating risk. Jyothirlatha adds, “The next leap will come from agentic AI and open banking where intelligence, governance, and empathy converge.” As lenders adopt responsible AI frameworks, the future of credit will be defined not just by speed, but by trust and inclusion.