With the crackdown over digital lending platforms in China, several such platforms have redirected their resources to India, targeting the vulnerable section of the country.
Traditionally, the unorganized lending market has always been prevalent and familiar in India. The said market provides a simpler mechanism for availing quick short-term loans, with the overall process being much more familiar than the burdensome process of availing loans from banks. However, simplicity comes at the cost of higher interest / penal rates accompanied by unlawful means of recovery.
Please click here to read the full article by Nand Gopal Anand and Vrindesh Patel, published in Mondaq.
Nand is a Partner in the Gurugram office of the firm. He specialises in Banking & Finance, with specific focus on general lending, external commercial borrowings, overseas direct investments, project finance, trade finance, shipping finance and real estate finance related transactions.