lending

• MUMBAI: EarlySalary, a consumer lending platform for working professionals, on Wednesday said it has tied up with non-bank financier HDB Financial Services Ltd to fuel growth in digital lending.
• HDB Financial Services is a subsidiary of India’s largest private lender HDFC Bank.
• G Ramesh, managing director and chief executive of HDB Financial Services, said, the partnership will help reach millions of customers across India by providing them with easy finance with digital on-boarding and customer support, thus providing them with a seamless borrowing experience.

• Home >Companies >News >India’s $1 trillion digital loan market is next battleground for tech giants.
• India’s digital loan market is becoming a battleground for companies from Facebook Inc. to Xiaomi Corp., as they seek a foothold in what’s set to be a $1 trillion industry.
• The social media giant’s foray into India coincides with Xiaomi’s, the Chinese maker of everything from rice cookers to gaming monitors, plans to offer loans, credit cards and insurance products in partnership with some of the nation’s biggest banks and startup digital lenders, the Press Trust of India reported, citing local head Manu Jain.

Everyone loves money.

Everyone loves easy money.

Everyone loves easy money, when paying back is not a tough option.

There has been a mushrooming of startups offering to lend money to each and everyone, there have been startups who are ready to lend to small business, some to medium business, and majority of them are willing to lend to one type of customer, “Greedy”.

With some or other sale going on online shops, the intense peer pressure created by Facebook group of companies; and the stress to fill the hollowness within, with objects and things, to show off to people who don’t even matter; is forcing people go way beyond their means.

A recent article suggested how even vacations and travel are now being piggy backed on borrowed money.

Its never been merrier for the greedy.

And then come these startups. The best part of lending is that, no one lends with their own money, except the loan sharks. They all ride on someone else’s horses and these new lending startups ride on the VC money.

With no prior history/study of how a customer might act/react for such types of lending (private/non-bank FI), they are willing to experiment on VC’s money. And obviously VCs are willing to experiment on someone else’s money. And this goes on…

What happens when everyone wants to lend?

In Cambodia more than 10% of borrowers are unable to pay back their loans for mobiles/gadgets and such. Sounds familiar?

The average loan size in Cambodia is now among the highest in the world, growing from $200 to $1,000 in the decade to 2014 — twice the pace of per-capita income.

While incomes have risen in the past 10 years, an economic decline could create an unsustainable environment while people are losing their jobs.  (via)

Yes it is, after all, almost every startup model is copy-pasted from SV,China or from wherever it may come from.

And best part, and probably most dangerous, these companies obviously don’t want to leave their customer, they would keep on offering, making them habitual, just like an opium seller.

You don’t need it, but you can’t rest, until you have it.

Soon, a Cambodia type crisis is going to loom here.

Achtung, baby!