The growing ease of online transactions and cheaply available internet has led to an increase in the credit card borrowing of Indians over the last few years. Such increases in credit spending against future income have led to a rise in unsecured lending- a practice wherein banks offer loans (personal loans or credit card loans etc, ) based on a client’s creditworthiness without taking any collateral. While such loans may benefit a consumer in the short term, concerns remain about banks' transparency to correctly assess creditworthiness and write a large volume of loans.
Fahad Nahvi and Yashoroop Dey are in conversation with Furquan Moharkan, who is a business journalist with eight years of experience and a best-selling author. In his earlier stints as a reporter with the Deccan Herald and a columnist at The Banker, he wrote on banking, financial markets and regulatory affairs.
They discuss the risks of easy credit consumerism in India, contextualised against unsecured lending and banking practices. Therein emerges a discussion on the ability of consumers to make prudent financial decisions when faced with asymmetric information on spending habits and easily available credit.
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