Now Reading: US founder calls India ‘credit-starved’ as banks demand hefty loan paperwork
-
01
US founder calls India ‘credit-starved’ as banks demand hefty loan paperwork
US founder calls India ‘credit-starved’ as banks demand hefty loan paperwork
Shreyans Jain, co-founder of Y Combinator-backed Manicule, has criticised Indian banks for being overly cautious with loans, calling India a 'credit-starved country'. In a social media post, he said US banks grant…
The Story in Brief
Shreyans Jain, co-founder of Y Combinator-backed Manicule, has criticised Indian banks for being overly cautious with loans, calling India a 'credit-starved country'. In a social media post, he said US banks grant large loans with just a decent credit score and short history, while Indian lenders demand a long checklist including ITR, bank statements, CA-approved net worth, and business balance sheets. He argued borrowers can still be rejected for loans worth three times their income, limiting India's global competitiveness.
The post triggered mixed reactions. One user said he got a $2 million credit line in the US without an SSN, while another defended Indian banks, noting high NPAs if loans were easier. A third said tech giants like Google and Amazon were built on venture capital, not bank loans.
The Indian Opinion
Jain's comparison ignores context: US credit systems evolved over decades with different bankruptcy laws and risk appetite. Indian banks tightened norms after the NPA crisis, and lending like the US could worsen defaults. But his point about over-documentation killing entrepreneurship has merit. The real test: will the RBI's upcoming digital lending rules or fintech innovations reduce paperwork without blowing up NPAs?
Source: livemint.com
This story was synthesised by AI from the source linked above.
