The expansion of digital lending in emerging economies has improved access to credit through faster and more efficient loan processing. Artificial Intelligence (AI) plays a central role by enabling lenders to assess borrowers using financial and behavioural data. However, concerns about transparency, fairness, accountability, and ethical decision-making continue to limit trust in AI-driven credit assessment, as many predictive models remain difficult to interpret.

This study proposes a Trustworthy Explainable Generative AI (TEGAI) framework for credit risk assessment in digital lending platforms. The framework integrates Generative AI (GenAI) and Large Language Models (LLMs) with Explainable Artificial Intelligence (XAI) to enhance predictive performance while ensuring transparent and fair lending decisions. It also incorporates responsible AI principles, including bias mitigation, privacy protection, regulatory compliance, accountability, and human oversight to promote trustworthy AI adoption.