Evaluating the Impact of Digital Lending Platforms on Customer Satisfaction in NBFCs in Jharkhand

Abstract: This study investigates the role of digital lending platforms in shaping customer satisfaction among clients of Non‑Banking Financial Companies (NBFCs) in Jharkhand, India. As these platforms integrate advanced technologies such as automation, artificial intelligence (AI), and data analytics they streamline loan issuance, reduce paperwork, and enable rapid disbursals, potentially elevating the borrower experience. Research indicates that such technologies can significantly bolster operational efficiency, widen financial inclusion by lowering access barriers, and deliver tailored services, all of which may enhance satisfaction levels among borrowers. However, the rapid proliferation of digital lending also brings serious challenges. Instances of exploitative practices including unauthorized platforms charging exorbitant interest, invasive data harvesting, and aggressive debt recovery have compromised customer trust and safety. Regulatory interventions, such as the Reserve Bank of India’s (RBI) Digital Lending Guidelines and the pilot of the Unified Lending Interface (ULI), aim to restore transparency, protect privacy, and foster fair lending practices. In the context of Jharkhand, an Indian state characterized by varied digital readiness, diverse languages, and socio-economic disparities. This paper examines how these dynamics influence borrower satisfaction. The study synthesizes existing literature, regulatory developments, and local contextual factors to propose a nuanced understanding of how digital lending platforms can both empower and alienate borrowers. It offers practical recommendations for NBFCs and policymakers to balance innovation with inclusivity, trust, and consumer protection.