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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.
The P2P lending platform is the only one that is still doing substantial business after the central bank tightened the rules last August, virtually shutting down the sector. It has carried on as though the new rules don’t exist.
LenDenClub has had a great third quarter. A quarter where it disbursed more new loans than it did in the six quarters prior, making it one of the leading players in the peer-to-peer lending business—with over Rs 1,023 crore in assets under management and Rs 16,011 crore in loans disbursed since 2015. Its latest performance though may have something to do with it playing fast and loose with the rules.
In August last year, the Reserve Bank of India issued an update to the rules governing peer-to-peer lending in India. In one fell swoop, the new rules outlawed much …
Lenders stand to gain a lot more than borrowers in the current challenging market environment
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.
