Comment on A product to get more Indians to save and invest

vardhan commented on 11 Dec 2020, 12:15 PM

I hope you would read this 🙂
There is numerous small business typically street-side vendors
they fulfil the finance requirement from private financiers at a rate of more than 40-50%. they aren’t financed by a bank or NBFC
what if we grab this market

To understand this, you should know about the Jagananna Thodu scheme by the chief minister of Andhra Pradesh scheme to provide an interest-free loan of Rs 10,000 to street vendors and other small traders.

My idea is all about the raise the capital through the SIPS and the raised capital will be distributed through the government to these vendors or self-help groups at a very low rate. repayment along with principal and interest on a monthly basis

advantages: compounding effect, monthly payments on time, easily disbursement and no competition

risk management: guaranteed by the state governments on the principal and interest up to a certain rate
investors got no worry because it is guaranteed by the state governments and high liquidity easy to redeem

sounds bit complicated, this all the basics of my idea
thank you

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