Evans School Policy Analysis & Research Group (EPAR)

Digital credit refers to loans that are issued remotely (often without any brick-and-mortar infrastructure), automatically (minimizing the time and number of steps between registration and the distribution of loans), and instantly (often in less than 72 hours), as defined by the Consultative Group to Assist the Poor (CGAP).

Digital credit products are rapidly emerging in the digital financial services (DFS) market as a new, innovative form of accessing electronic money. Digital credit products differ from traditional forms of credit, using smart and feature phone technology or web platforms to register, score, approve, and distribute loans to borrowers.