<p>Digital lending has redefined credit access by providing low-cost, quick loans via online platforms, offering alternatives to traditional financial institutions. Technological advancements like cloud computing, artificial intelligence, and blockchain drive the Transformation. The study explores the transformation of traditional banking lending practices, particularly focusing on the shift to peer-to-peer platforms. Content analysis was used for selected documents. The study found that Digital lending bridges financial gaps for underserved populations by leveraging technology and fostering innovation while requiring balanced regulation and collaboration to ensure security, transparency, and inclusive economic growth, digital lending leads to financial inclusion, especially for underserved sectors such as low-income groups and rural communities in India. However, challenges like cybersecurity, fraud, and consumer protection remain, highlighting the need for stronger regulatory measures, study also examined the digital lending regularity perspective as per India’s regulatory frameworks, including the Banking Regulation Act, RBI Act, and Companies Act, while comparing them with global models. It stresses the importance of robust legal frameworks to safeguard consumer rights, reduce fraud risks, and ensure the sustainability of digital lending platforms. Additionally, research underscores how digital lending aligns with the sustainable development goals by providing equitable access to financial resources and promoting economic growth.</p>