An analytical assessment of retail lending practices and their impact on customer experience and loyalty with respect to NBFC in Chennai

The financial landscape in India has evolved significantly, with Non-Banking Financial Companies (NBFCs) emerging as key players in the retail lending sector, especially in urban areas like Chennai. This study analytically assesses the retail lending practices of NBFCs, focusing on their impact on customer experience and loyalty by examining factors such as loan product offerings, service quality, customer relationship management, and technological adoption. Utilizing an exploratory and descriptive research design with a mixed-methods approach, data was collected from 150 retail customers through structured questionnaires. Findings indicate that customers perceive “Technological Adoption” more favourably than “Cost of Borrowing,” with male customers showing a higher perception and better experience than females. A strong positive correlation between customer experience and loyalty was noted, with “Technological Adoption” being the most influential retail lending practice predicting customer experience. The study emphasizes the importance of enhancing customer perceptions and experiences to foster loyalty, recommending that NBFCs focus on transparency, simplified processes, and technology integration to improve customer satisfaction and strengthen their competitive position in the financial sector.