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!
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?
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.
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?
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!
Hi Vishnu, if they use this model they will be FIUs as they could then use that information for credit underwriting.
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.
Who provides the aggreagation for all lending data? Or do you expect LSP would want to develop and aggregate with eachlenders?
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.
Well written. Thanks for sharing
As a country are we ready fir cash flow based lending??
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?
Excellent article and simple to understand.
Thanks Puneet! Very glad you found it helpful. :)
Really well written article, Ravish!
Thank you Mohit! :) This was a long one - thank you for your time reading it.