This article has been contributed by Mr Rohit Pateria, CEO & Co-founder Lark Finserv
India’s credit ecosystem is undergoing a seismic shift ,technology, data intelligence, and open banking are dismantling traditional barriers to financing. As digital lending matures from convenience to infrastructure, Lark Finserv stands at the forefront, enabling wealthtech platforms and financial institutions to offer Loan Against Securities (LAS) seamlessly through API-first solutions.
The New Era of Digital Lending
India’s digital lending landscape is evolving rapidly, driven by regulatory clarity, AI-led underwriting, and financial data portability. The Reserve Bank of India’s 2025 Digital Lending Directions introduced stronger guardrails around multi-lender participation, Default Loss Guarantee (DLG), and third-party integrations encouraging responsible innovation and consumer trust. This transformation ensures that digital lending systems are no longer just fast but secure and transparent.
AI and machine learning now underpin the majority of credit journeys from customer onboarding to risk scoring enabling smarter, faster, and fairer credit delivery. Add to that blockchain-built smart contracts, which promise tamper-proof, real-time verification of digital collateral, and the architecture for a secure credit economy starts taking shape.
Lending Against Securities: India’s Next Credit Frontier
The Loan Against Securities (LAS) market in India is gaining unprecedented traction. Investors, particularly high-net-worth individuals and business owners, are increasingly leveraging their financial assets—like mutual funds, shares, and bonds—for instant liquidity without liquidation. Fintech-led lenders, wealth managers, and NBFCs have recognized this as a powerful alternative to personal loans, enabling wealth creation continuity.
According to Financial Express (2025), digital players are facilitating LAS deals of up to INR 100 crore through advanced aggregator models and API-based partnerships. Borrowers prefer LAS for its low cost of capital, real-time processing, and asset-retention advantage ensuring investments continue compounding while unlocking working capital.
How Lark Finserv Reimagines LAS Infrastructure
Lark Finserv has emerged as the credit infrastructure layer that powers LAS flows across India’s wealth management ecosystem. Using its API and SDK stack, Lark connects lenders, wealth platforms, and asset custodians through a unified digital workflow.
Here’s how Lark enables embedded credit innovation:
- Digital Collateral APIs: Real-time valuation, pledge management, and margin monitoring for mutual funds, equities, ETFs, and bonds.
- Multi-Lender Marketplace Integration: Enables wealthtech platforms to match borrowers to multiple lenders dynamically, with transparent rate discovery.
- Consent-Driven Data Flows: Built on Account Aggregator and open banking protocols, ensuring user-controlled data sharing and RBI-compliant traceability.
- Plug-and-Play SDKs: Wealth management platforms can embed LAS offerings natively on web or mobile apps without infrastructure buildup or manual underwriting.
Through these technologies, Lark transforms LAS into a no-code credit layer, empowering wealthtech apps, brokers, and digital distributors to extend instant loans to their users while maintaining full compliance.
Regulatory Alignment and Trust Architecture
The RBI’s 2025 Directions reflect India’s maturity in balancing innovation with governance. Lark Finserv’s architecture aligns with these principles ,maintaining direct lender-client relationships, transparent DLG structures, and independent audit trails on every transaction.
Lark’s engine ensures:
- Zero compromise on risk attribution clarity.
- Full control for lenders over underwriting parameters.
- Automated compliance-ready reporting for all counterparties.
This infrastructure-first approach allows financial institutions to scale LAS onboarding within a weeks-long integration cycle while maintaining regulatory parity.
Why LAS Matters for India’s Next Credit Leap
The LAS economy is not just about secured credit; it’s about capital efficiency. As equity and mutual fund participation deepen among retail and HNI investors especially after record SIP inflows India’s LAS market is poised to grow multi-fold. Unlocking liquidity without breaking investment momentum is at the heart of empowered wealth creation.
With Lark Finserv, every wealth platform can become a credit facilitator — embedding liquidity access in the same ecosystem where wealth is created and managed. It’s the embodiment of India’s embedded finance vision, turning portfolios into living, breathing financial engines.
From Fintech Growth to Credit Infrastructure
As the Indian fintech sector transitions “from growth to resilience” , digital lending is evolving beyond app-based convenience to infrastructure capability. Platforms like Lark Finserv are catalyzing this shift — building the pipes, protocols, and trust frameworks that define the future of responsible credit.
The future of digital lending in India will not just be about who lends faster, but about who builds safer, smarter, and more connected ecosystems. Lark Finserv is doing exactly that turning lending against securities into the backbone of India’s next trillion-dollar credit opportunity.
Apoorva Bajj
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