Charging 20% interest rate per se is not bad. If you know, how buy now and pay later schemes and buy on EMI works, you will understand that the companies charge 15-18% interest rates. Here, I am talking about consumer segment. So, the actually problem is over leveraging the consumer, means giving multiple loans with this interest rates to a single person and kind of throwing him in a debt trap. This is exactly what happening in MFI segment.
On the other hand, Ugro not giving any loan to a individual consumer, rather to a enterprise with credit history and GST number. Loan is only given after triangulating several data sources to ensure that the enterprise is not over leveraged, and has the capacity and intention to pay. On the top unlike the consumer loan where the money is used to buy TV and Fridge the credit given to a enterprise is used for generating revenue and using it for productive use.
Ugro being Five-star, I am not buying this idea. Ugro has far healthy and scalable business model.
Disc. Invested
| Subscribe To Our Free Newsletter |
