User perceptions of RBI-approved P2P digital lending apps: an NLP, machine learning, and deep learning approach

Introduction: Digital lending, also known as alternative lending, refers to fintech platforms that offer quick and easy loans through digital channels, bypassing many of the limitations of traditional banking. Since the mid-2000s, digital lending has become a major fintech innovation, with rapid growth in India driven by financial inclusion measures. However, the sector continues to face challenges, including fraud, transparency issues, and consumer dissatisfaction. The primary objective of this study was to understand how consumers perceive and assess India's RBI-approved P2P digital lending apps by analyzing a large dataset of customer feedback to identify strengths, weaknesses, and overall satisfaction levels. Methods: The study analyzed a final dataset of 15,408 user reviews collected from seven RBI-approved digital lending platforms: 5Paisa, Faircent, i2iFunding, LenDenClub, CashKumar, Lendbox, and IndiaMoneyMart derived from an initial 15,537 reviews. The cleaned data was then examined using natural language processing, topic modeling, and supervised machine learning and deep learning models to identify key themes and evaluate predictive performance. Results: Topic modeling identified 11 recurring topics. Sentiment analysis revealed that 55% of evaluations were positive, 41% were negative, and 4% were neutral. Strengths included loan disbursement, withdrawals, and EMI payments, while weaknesses involved interface design, transparency around rejections, and login functionality. Comparative data revealed that IndiaMoneyMart and i2iFunding received the highest user satisfaction, while 5Paisa and Lendbox trailed due to recurring complaints about transparency, accessibility, and overall user experience. In terms of modeling, the deep learning model VGG16 and ensemble machine learning techniques (XGBoost, CatBoost, and LightGBM) consistently achieved the highest predictive accuracy (up to 0.88), outperforming simpler models such as decision trees and ResNets. Discussion: The findings indicate that digital lending platforms support financial inclusion but require improvements in user interface and user experience, better transparency in loan decisions, and stronger customer support. Addressing these areas can help strengthen trust and promote long term adoption of digital lending services.