The following incident succinctly sums up what's happening on India's peer-topeer (P2P) lending landscape. In May, Mr A invested ₹10,000 to be lent to borrowers on a P2P platform, which we'll call Platform B. I'm not naming either the investor/lender or the P2P platform involved. Mr A transferred themoney on May 3, and the credit reflected on the P2P platform on May 9. He had chosen the "manual" option to invest. There is also an "auto" investment option. In the manual investment process, the investor picks the borrowers, and the platform follows the investor's instructions. In auto investing, the platform checks the credit score and cash flow (whether the borrower is a salaried person or not) of prospective borrowers, among other credit appraisal parameters.
On May 16, Mr A checked the website of the platform with the intention of choosing borrowers. However, he found that no money was available for investment as the ₹10,000 had already been invested in 165 loans, with an average loan size of ₹60.60.
This was okay since this is the norm to diversify risk. What was not fine with Mr A was that 19 borrowers, or 11.5 per cent of them, had not paid the instalment for loans already taken from him for at least 30 days. This is the first stage of default. If a borrower does not service a loan for 90 days, the loan becomes a non-performing asset (NPA). The question is: If someone invests on May 9, how can the money be lent to borrowers in April or earlier, some of whom have already started defaulting on loan repayments? By mid-June, the number of Mr A's borrowers dropped to 136, but the number of loans not serviced for 30 days rose to 34. On top of that, there were seven NPAs. By mid-July, the number of borrowers further dropped to 85. This time, 24 loans, or more than one-fourth of the loans disbursed, experienced non-payment for 30 days, and six loans were NPAs.
この記事は Business Standard の July 29, 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Business Standard の July 29, 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
IT stocks suffer biggest one-day fall in six weeks
Accenture promotion delay, past Fed rate cuts cited
Cabinet clears 'One Nation, One Poll' and host of proposals in farm to space
Soon after completing 100 days in office, the National Democratic Alliance (NDA) government has taken a series of decisions that would have political and economic implications for the country.
Tata Power to scale up internal RE component supply chain
Plans to manufacture key parts rather than buying them
IT staffers' FY25 salary hikes may be 5.5-8%
Experts say top performers may continue to see increases ranging from 12-18%
RInfra pares debt by 87% to ₹475 cr
Anil Ambani group firm Reliance Infrastructure (RInfra) and its subsidiary Reliance Power (RPower) have cleared a major part of their debt, with RInfra reducing its standalone external borrowing by almost 87.6 per cent to ₹475 crore, down from ₹3,831 crore as on June, according to stock exchange notices.
'No plans to phase out Kwid until rules allow'
Renault India, which saw a 33 per cent decline in sales in 2023, is facing a challenging 2024. The company's Managing Director and Chief Executive Officer VENKATRAM MAMILLAPALLE, discusses the firm's revival plans, launch strategy, and the future of the Kwid in an interaction with Shine Jacob in Chennai. Edited excerpts:
25-year-old company veteran Samir Kumar has cart full as he takes reins at Amazon India
Amazon has announced that Samir Kumar, a 25-year veteran of the company, will assume the role of head of its India consumer business effective October 1, 2024.
ZEEL refutes $940 mn Disney Star claim over ICC TV rights deal
Star India on Monday filed a statement of case seeking $940 million damages from Zee Entertainment Enterprises (ZEEL) over the terminated ICC TV rights deal, the latter said in a stock exchange filing.
Best option is to double down on mkt strategy: P&G India
Procter & Gamble Hygiene and Healthcare (PGHH) and Gillette India (GI), both listed entities of Procter & Gamble India, noted in their investor calls that despite near-term macroeconomic challenges, an above normal monsoon will help revive demand in India.
'Irreparable loss for us': EY India on death of CA
The death of 26-year-old chartered accountant Anna Sebastian Perayil is \"tragic\" and an \"irreparable loss\" for EY India, the company said in a statement on Wednesday.