Finance · Fintech

How can I get loans back from users

Caspar Zed Cofounder @cityowl

October 6th, 2018

I'm starting a fintech company I'm gonna provide loans to users, mainly students. The thing is how can I get back the from them?

Any suggestion will be appreciated.


Thanks

Dane Madsen Organizational and Operational Strategy Consultant

October 8th, 2018

I have little understanding of the lending laws in India. In the US you would have 1) pledge of assets in which they have net equity, and/or 2) enforceable pledge of income. Just providing loan with no collateral is likely to fail.

Asfandiyar Sultangali communication

October 9th, 2018

I understand this is a short-term loan, so you need to take a pledge. For example cell phone, laptop. Of course, the Deposit must be more expensive than the loan amount and the original document. For example ID, passport.

Kyle Lamy

October 11th, 2018

That's a pretty broad question and the implementation details are complicated. In the U.S., you can have securitized and un-securitized debt. If it's un-securitized, you are relying on people to just pay you back out of good faith in order to protect their credit score. If they don't pay you back, you could try collecting yourself or passing onto a collection agency...which would most likely not return the full amount owed since you have to pay the agency.


That's a very very short answer :)