use cases in digital lending - CloudBankin – A digital loan software by Habile Technologies

One of the interesting use cases in digital lending:

If a borrower takes a personal loan, let’s say 1 Lakh, for 2 years, and they have been paying properly for the first 6-8 months,

Can lenders incentivize them?

1) By increasing the loan amount (Upselling! Both borrowers and lenders benefit),
2) By reducing the interest rate (we increase the interest rate or add overdue fees if they default. Similar logic should be applicable if they properly pay, right?)

If we incentivize customers, there’s a higher probability of them sticking with the lender.

A simple strategy to retain borrowers, but no one does it. Why?

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