DripFin

DripFin means Drip Finance ala Drip Irrigation (i.e. small scientific value added productive measures)

Archive for Individual Lending

Sitting on a time bomb ! – Business Today

View this article………..

– MFI’s in India are gravitating towards doing “larger loans/individual lending/other forms of consumer lending”
– Larger loans are obviously very lucrative, as they earn more revenue while the cost to collect them does not increase in the same proportion.
– But, Larger Loans require different set of systems, processes and capabilities i.e credit scoring, portfolio analyzes
As per this business today article, consumer lending finance companies in India are facing stress on their portfolio
– Ideally, once a micro borrower needs a large loan,should he not  avail  it from a bank.
Prof Yunus, the creator of Microcredit, has been reiterating, see here, for the past 6 months,at every possible forum, the systemic risks involved in chasing profits or say excessive profits.

Advertisements