That is incorrect. People who have black money don’t need loans at all. What you are saying is the informal economy, and majority of the people who are part of this economy, who don’t not fall under the IT radar don’t have black money. There are crores of honest people who earn less than the basic exemption limit, who don’t have PAN, even a bank account, and don’t even know that IT filing exists. So these people may have started visiting NBFCs, knowing the interest rate differences, and I don’t know what kind of checks the companies have in place before disbursing loans.
And I guess, these are all fragmented businesses, there may not be stickiness too, unless they repay the loan quickly, need a loan again, happy with the experience they have had with a company, approach them again for the loan. I don’t know if companies keep track of all of this data and analyze it.
Not invested.
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