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#531 Smart Lending: Why Business Loans Are Better Than Consumer Debt with Y S Chakravarti
Manage episode 471431189 series 3475089
Why do business loans drive economic growth while consumer debt can be risky? In this conversation with Y.S. Chakravarti, we explore the power of smart lending, how financing entrepreneurs creates jobs, and why funding business assets is better than fueling consumption.From real-world lending experiences to lessons on financial discipline, this discussion covers:1. The key differences between business loans and consumer debt2. Why smart lending supports MSMEs and long-term financial stability3. How a ₹50,000 loan helped build a ₹5,000 crore business4. The psychology of borrowing and repayment behavior5. The future of finance: Human insights vs. digital lending models(00:00) Introduction(01:20) An anecdote from Mr. Chakravarti’s early career(05:45) Growth of Shriram Finance(07:34) Truck Finance and Earning Assets(11:22) Why is Shriram Finance amalgamated?(12:55) Main income streams(15:07) No unsecured credit and why(18:53) 2 Wheeler business(21:38) Views on the technology and the digital world(25:00) Customer Acquisition(28:18) RBI reducing the risk weights(30:00) Expansion in Physical Branches v Digital platforms(32:39) Growth hinges on Transportations and MSMEs(37:24) Anecdote on what to avoid (learning from mistakes)(41:10) What can young people learn from the lending business?Smart lending is about more than just providing money—it’s about supporting entrepreneurs, businesses, and long-term financial success. Understanding the difference between business loans and consumer debt is essential for making better financial decisions.
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