12 Comments

Wow, this article is well explained and interesting to read. Could you explain under which category the startups like "Lending Kart" or "BNPL: based ones fall under?. Thank!

Expand full comment
author

Hi Vishnu, if they use this model they will be FIUs as they could then use that information for credit underwriting.

Expand full comment

Is it allowed to become both AA and LSP? Because in many cases consumer facing products will have the chance to build data pipelines by collecting fin info from first time users?

Overall, very good article indeed.

Expand full comment

Who provides the aggreagation for all lending data? Or do you expect LSP would want to develop and aggregate with eachlenders?

Expand full comment

Before a lot of real needy avail this system, we have to see attitudinal change in govt agencies - those who hound people/MSME for taxes (and mamool) and those who'd encourage credit culture by sharing true cashflow of the business. So far, people are more afraid of being made to pay for the cashflow they run, than looking at the benefits of easy access to credit.

Expand full comment

Well written. Thanks for sharing

Expand full comment

As a country are we ready fir cash flow based lending??

Expand full comment
author

Actually, a lot of private lenders actually do that. At a country level - something drastic needed for such a shift. I think the government might also finally be able to bring SMEs to fill full value GST invoices (because loan value size is dependant on invoice size). What do you think Santosh?

Expand full comment

Excellent article and simple to understand.

Expand full comment
author

Thanks Puneet! Very glad you found it helpful. :)

Expand full comment

Really well written article, Ravish!

Expand full comment
author

Thank you Mohit! :) This was a long one - thank you for your time reading it.

Expand full comment