Easy credit a help or evil..
Is #EasyCredit a Good Thing? I would say NO. While it depends on the income level of the person and the “Need”. But in all other cases its an evil. Just because a person can get or afford a loan shouldn’t take it.
Having aspirations for Product and Services is a great thing, but without realising the potential to create a reserve to pay it back is an issue. Many people are or will suffer from it, and it hurts the most to the lowest strata or BoP.
Taking a judicious call to avail loan is utmost important and Financial Institutions must assess the Need of the person, than just the affordability and credit scores.
High supply of easy credit will lead to a situation where most of us will have credits much higher than we can afford to pay, and Roll Over and Evergreening of loans will happen, or cases of defaults..
The bubble will burst and will have a systemic and ripple effect on many Institutions and the economy. There must be a proper #MixofSavingsandCredits, (anybody has any formula for this mix?)
But Credit is a high margin business.. 😇 and is always in demand.
Please share your thoughts…