What have we learnt from the RISE
and fall of #P2PLending in #China?
Many lost their #Savings & their lives
Individuals’ money is lost & the industry is shattered. Higher interest rates fueled aspirations of many individuals, as it promised higher returns than bank deposits. But, before they could understand the return game and time value, it is over.
In #India it is regulated with guidelines and advisories, but does a normal person understands the risk, or is s/he just looking at the ROI%? I have always maintained #Lending should be responsible and not like sachet selling. I regularly ask few questions, and I am sure people from Lending and #P2PLending space will help me to get answers to following;
– People/SME need loan but at what cost? Will the loss be of an individual or of an economy?
– Are we easing out the lending risk by outsourcing/shifting it to individuals than through institutions?
– Are people lending/borrowing through P2P aware/care for risks & #CreditScore?
– What if individuals’ money is lost, similar to China? Who will get directly/indirectly impacted? Will #RBI be able to save individuals money and interests?
– Do we want to increase #NPAs for P2P individuals, as we are still not over with Institutional NPAs?
Please share thoughts