What Can The Money Lenders Do?
Under generations of persecution, extortion and discrimination has blunted the organizational capability of the ‘native money lender.’ He needs to look at himself afresh – and exploit business opportunities and use his knowledge of the Indian financial ‘consumer.’ A simple outline of an action plan for the money lenders to reclaim their position can be as follows: – 1. Incorporate a holding company. 2. Contribute one lakh rupees capital per member – with 34,000 members. 3. Create a paid up promoter capital of Rs.340 crores – and an IPO for 660 crores. 4. Obtain RBI licence for a rural bank with this paid up capital of 1000 crores. 5. Enrol all money lender members as DSAs. 6. Refinance money lender portfolio – and create further liquidity. 7. Use the money lender network to raise deposits, sell insurance, obtain refinance mortgage for housing, etc. Even a conservative estimate of Rs.1.00 crore lending, guaranteed by these money lenders can inject Rs.34,000 crores of investment in the a
