Fair Lending

The government's proposal to clamp down on unauthorised private lending practices signals a decisive move to tackle unregulated financial activities that have long preyed on vulnerable segments of the population.

With the advent of digital lending platforms, access to credit has become easier, but it has also brought a proliferation of predatory practices.

The proposed law, with its strict penalties and regulatory framework, is both timely and necessary to protect consumers and establish order in the lending ecosystem. Unregulated lending has been a persistent issue, particularly in rural and low-income urban areas, where financial literacy is limited. The rise of digital lending apps has exacerbated the problem, with many platforms exploiting borrowers through high interest rates, hidden charges, and coercive recovery methods.