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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
After a crackdown on predatory Chinese loan apps, established local players like Paytm have entered the market for short-term loans—but with annualized rates as high as 50-60%.
India’s digital lending industry is at a crossroads.
Last year in August, the Reserve Bank of India introduced its digital lending guidelines with an intention to clean up in an industry plagued with illicit loan apps—mostly operated by Chinese entities—issuing credit at obscenely high interest rates and practicing predatory collection tactics.
The RBI’s new rules and the subsequent purging of these illegal apps from Google’s Play Store have meant that there is a void in the market for products delivering short-tenured personal loans with minimum paperwork. This market or borrowers, typically dominated by newly salaried individuals and blue collar workers, …
A lending business at heart, the Bengaluru-based company projects itself as a fintech ecosystem comprising UPI, insurance and mutual funds. It’s time investors took note.
The central bank’s shift to a 100% collateral requirement threatens to erode leverage, reduce volumes and force a consolidation across prop desks.
High returns, RBI-regulated comfort, and easy withdrawals drew investors in. Now, with repayments drying up, the fintech platform, its NBFC partner, and the regulator are pointing fingers—leaving customers to chase their own money.
