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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
Personal loans in India have seen excessive growth, fuelling risky investments like speculative trading. Things will not end well for lenders when the music stops playing.
Indian banks and non-banking finance companies are facing a considerable blowout in personal loans, if the latest data by the Reserve Bank of India and NBFC results are anything to go by. The culprit: trading losses in financial markets.
While it is impossible to relate these fungible loans with speculative trading, the signs are unmistakable. And ignoring the trend could have serious repercussions. Two recent studies by India’s market regulator show how badly retail investors have done in speculative trading.
Despite these losses, though, the allure of trading remains strong. And using loan funds to trade looks like an appealing …
