Whalesbook
Credit System Expansion Outpaces Accountability
India's credit ecosystem has seen extraordinary expansion over the past decade. Banks, Non-Banking Financial Companies (NBFCs), fintech platforms, and a maturing digital public infrastructure have collectively transformed credit distribution. Access has widened, speed has improved, and last-mile reach has become a defining strength of the system.
Distribution, more than capital, has been the central enabler of this remarkable growth. However, a critical oversight has been identified by Shachindra Nath, Founder and Managing Director of UGRO Capital.
Lack of Intermediary Oversight
Loans represent some of the largest and longest-tenure financial decisions made by households and Micro, Small, and Medium Enterprises (MSMEs). Despite this, intermediaries involved in these decisions face no market-wide requirements for training, testing, or continuing education. Nath's observation points to a significant gap in accountability within the credit distribution chain.
This deficiency raises questions about the long-term stability and integrity of the rapidly scaling credit market, where intermediaries play a crucial role without standardized qualification or oversight.