5 Reasons Repeat Borrowers Are a Lender's Best Asset
For lenders, repeat borrowers are a steady and cost-effective source of income. Of course, new customers are needed to grow and scale, but retaining existing ones is just as important. They are easier to serve, more predictable, and more loyal, making them a valuable base for sustainable growth.
Since Viva Money’s launch in late 2023, the share of repeat borrowers has grown significantly. In the first half of 2024, 72% of credit line issuances were for new customers, whereas 28% were for repeat borrowers. By the end of 2024, this ratio reversed to 39% and 61%, and by the second half of 2025, it amounted to 12.8% and 87.2% respectively. This shift shows how customers are learning to use our product better and are choosing to stay with us for the long term.
The ratio between new and repeat borrowers largely depends on how many new customers come to us. An increase in new sales reduces the share of "repeat customers". In July, we had 2,200 new customers, while there were more than 18,000 repeat ones with a total active customer base of about 30,000. We consider this to be a good result.
How did we get there?
We know our clients, and we know how to work with repeat customers. Striving to maintain their share at a high level, we employ various communication channels, both within the Viva Money mobile application, e.g., push notifications, and with external communications, e.g., messages in WhatsApp, SMS, mailings, and automated calls.
Our focus is to re-engage clients who may have gone quiet, while ensuring we don’t disturb those already active. For instance, if a customer has been repaying for three months without fresh activity, we reach out with relevant offers to bring them back. This approach gives quick results without raising acquisition cost.
My 5 reasons why you should work with repeat clients:
- Less risk
- Credit history is known: A repeat borrower has already demonstrated their solvency. If they paid on time on the previous loan, the risk of default is lower. According to our estimates, repeat borrowers have a credit risk that is two times lower than that of new customers.
- Behavior is predictable: The lender has the data on how the client has repaid previous debts, how often the client has taken out loans, whether there have been any delays, etc.
- Low acquisition costs
- None or little advertising and marketing costs: The lender does not spend money on attracting a new client, as they are already in the database. For repeat customers, we spend only 10 rupees to attract one client. For new clients, the cost of attracting is several times higher.
- Easier and faster sales: There is already contact information, trust, and the client is familiar with the products.
- Faster and cheaper scoring
- Automated verification: Repeat borrowers can be offered loans without in-depth verification. Lending is processed through automated scoring models.
- Less paperwork and fewer checks: You don’t have to collect a full package of documents every time you wish to borrow or lend.
- Loyalty enhancement
- Customer retention: A customer who has had a good experience is more likely to return.
- Ample cross-selling opportunities: A lender can use personalized offers and loyalty programs, which increase revenue per customer.
- Long customer life cycle (LTV — Lifetime Value)
- Efficient long-term strategy: A repeat borrower is part of the LTV increase strategy.
A consistent source of income in the long run: The longer they stay, the more consistent revenue they bring to the lenders.
The only challenge with repeat borrowers is that they usually borrow smaller amounts than new customers. On average, repeat clients take ₹11,000–14,000, compared to nearly ₹40,000 for new ones. But their reliability, lower risk, and long-term value far outweigh this difference.
