What all can you get a loan for?

Well if you ask a 70 year old he will tell you “House”.

• buying a dress
• going on a vacation
• getting married
• watching an Indo-Pak match in South Africa
• buying  a fridge, washing machine, ….what have you
• painting your house

You get the drift? So a greedy bank which has employed some super desperate kids and pushes them hard…is willing to grow its loan book by 25% a quarter…in an economy growing at 8% p.a……we have a classic conflict of interest problem.

So a banker gets a guy to buy a car (good loan) so that he can drive a new OLA car. Great.

As soon as the banker sees the boy repaying the loan for 3 months REGULARLY, the software tells him…go give him another loan. So the desperate boy who is about to lose his job…gives him a personal loan to buy a bike (bad idea).

For a few months he pays both the instalments.

Then one day his contract with Ola/Uber is over or he is earning much less. This boy now has no clue…what to do.

Of course he is still driving the same car, but now the car is a BURDEN. With no Ola/Uber to back him..his earnings have dropped.

He has no clue what to do….

One day he is driving home a Sales executive…in a bank who is talking real big money on the phone.

So like the greedy farmer who killed the goose that lays golden eggs…this stupid driver kills the executive.

Now, you could ask…what is the connection.

Right, I do not know what is the connection, it is for you to figure out….who is the murderer? is it the taxi driver?

the kid who brought the loan application?

the managing director who sanctioned the loan?

the Private equity investor who kept telling the CEO…we need to exit …please show 25% Q on Q growth?

the rational investment analyst who judges an Nbfc on the q on q growth instead of the quality of assets?

well, go figure

Let the truth sink in…….