Small credit business finds new ways as unsecured loan growth ebbs

Firms that create differentiated risk assessments and invest in quality solutions will win, say industry executives

“Bank credit lines to firms like ours have dried up. Co-lending continues to be fine, but running a standalone book is proving to be difficult,” says a candid V Raman Kumar, founder-chairman, CASHe. The vendor of “quick” personal loans, buy-now-pay-later, and credit-line services has seen its assets shrink to around Rs 1,000 crore, down by Rs 300 crore a year ago. The plot on unsecured lending changed after Mint Road upped risk weights on the business in November: To 125 per cent from 100 per cent (and on credit cards to 150 per cent from 125 per cent). But what