Tuesday, October 25, 2016

Re: [MFP] query on Indian consumer debt levels [1 Attachment]

 

Hi Jami


Greetings.  Hope you are doing well.  There is a lot of work happening along these lines through Self Help Groups and microfinance companies (which have made a huge come back, with more sober operations, lower loan rates etc. but that is a different subject). 

The point is that rural folk in India tend to go straight to usurious moneylenders and self help groups are the only real, trusted, alternative that they have.  The quality of work is patchy, the information available to them even worse.   Things like gold loans , which is a truly dumb concept is heavily promoted and causes loses (read two of our articles here: http://www.moneylife.in/article/the-real-cost-of-gold-loans/47273.html  and http://www.moneylife.in/article/gold-loan-companies-and-their-murky-underbellies/8233.html )

There is a lot to be done, but ideally, training of trainers may be a better idea, especially if you work with good self help groups that are truly concerned about borrowers. 

best 

Sucheta Dalal
Founder-Trustee


304, 3rdFloor, Hind Service Industries Premises,
Off. Veer Savarkar Marg, Near ShivajiPark Seaface,
Dadar (W), Mumbai 400028 T: 022-49205000 (Board)  |  Fax: 022-49205022

On 25-Oct-2016, at 11:42 pm, Jami Solli jamisolli@gmail.com [MicrofinancePractice] <MicrofinancePractice@yahoogroups.com> wrote:

 

Greetings Group!

Have you or anyone you know ever tried to assess levels of over indebtedness in any part of India?

I am conducting research related a proposal to create debt counseling/mediation facilities.  The idea is to start one city where a consumer advocacy organization already has a consumer redress center that handles financial and other sector disputes.

We would assist consumers to develop a feasible budget and payments plan, and negotiate a new payment plan with their creditors or file bankruptcy relief where the situation warrants.  A related hypothesis is that the financial sector will gain by participating as they no longer have to hire thugs to debt collect, nor do they have to sell off NPLs.

Interested in your collective insight and related hypotheses.

Also, does anyone know if the RBI is measuring over indebtedness levels (in some form or other) --- for ex. like South Africa does through its national credit regulator so you can see that some 50% of consumers are 'debt impaired,' which is behind by 3 or more monthly payments on a credit obligation and legally unable to borrow more.

Thanks in advance! Hope all is well in your corners of the globe.

Best,
Jami Solli


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Re: [MFP] query on Indian consumer debt levels

 

Many many thanks Anuj.  What an inspiring person.  I have long thought that it is the journalists who will change the world for the better.

Best,
Jami

On Tue, Oct 25, 2016 at 11:33 PM, Anuj Jain ajain@stfx.ca [MicrofinancePractice] <MicrofinancePractice@yahoogroups.com> wrote:
 

Dear Jami,

 

There is a journalist names P. Sainath, many of us have got to know him a bit, and his name to fame came with a book called 'everyone loves a good drought'. He is much more than that, and continue to do rural journalism in a very unique way. You may already have heard about him.

 

Among many other things he does, one of his passions is to promote and create 'people's journalism' where people tell their own stories. One the motivation for this initiative comes from the fact that corporate journalism has failed people, and continues to do so.

 

To your point, there is a people's archives of rural India (PARI) site that he has championed, with some wonderful, very diverse, people created everyday inspiring life stories from all different nooks and corners of rural India.  

 

Rural distress continues to be one of the key themes Mr Sainath is quite an authority on. I am sharing this link that provides some of the stories on suicide; and how most of the rural and agriculture distress is (hu)manmade. Each of the stories from him are backed with evidence and data, most of which comes from government's own sources.

 

https://ruralindiaonline.org/search/?q=suicide

 

Hope you find the stories informative, and useful, just to get the sense of nature and scale of issues. Have a look. And if you like, I will be happy to put you in touch with him/ his colleagues for further information.

 

Will like to hear more about your work on the subject as well.

 

Best!

 

Anuj

 

 

 

From: MicrofinancePractice@yahoogroups.com [mailto:MicrofinancePractice@yahoogroups.com]
Sent: Tuesday, October 25, 2016 5:07 PM
To: MicrofinancePractice@yahoogroups.com
Subject: Re: [MFP] query on Indian consumer debt levels

 

 

Thanks Professore!  Could you dig out your notes? That would be very helpful to see if the counseling center is still operational etc.  

 

And, I remembered you had done that research on the farmer suicides because we discussed that the Govt. was not interested to study how many women died :(

 

Thanks again!  Hope all is well in the UK.

 

Best,

Jami

 

On Tue, Oct 25, 2016 at 2:38 PM, 'Malcolm Harper' malcolm.harper@btinternet.com [MicrofinancePractice] <MicrofinancePractice@yahoogroups.com> wrote:

 

Dear Jami,

 

This may or may not be relevant, but in 2007 (or so) I did some work for NABARD (funded by SDC) in response to a request from the Minister of Agriculture for suggestions as to how he should respond to the rash of farmer suicides. We met some sad widows, and talked to bankers and others in various places, including Viddarbha in Maharashtra where there had been a particularly high number of suicides.

 

Bank of India (not the RBI, the Bank of that name) had just started what they believed was the only debt counselling service in India which was not for the urban middle class, in Viddarbha, and I spent some time with the person who ran it. I could send you my notes on that if you wish. One of our suggestions was that such a service should be set up more widely, but I don't know if anything came of it, and the Minister ignored most of our recommendations and chose instead to do another loan waiver, with the usual destructive effects on credit culture, and not much else.

 

Malcolm

 

Sent: Tuesday, October 25, 2016 7:12 PM

Subject: [MFP] query on Indian consumer debt levels

 

 

Greetings Group!

 

Have you or anyone you know ever tried to assess levels of over indebtedness in any part of India?

 

I am conducting research related a proposal to create debt counseling/mediation facilities.  The idea is to start one city where a consumer advocacy organization already has a consumer redress center that handles financial and other sector disputes.

 

We would assist consumers to develop a feasible budget and payments plan, and negotiate a new payment plan with their creditors or file bankruptcy relief where the situation warrants.  A related hypothesis is that the financial sector will gain by participating as they no longer have to hire thugs to debt collect, nor do they have to sell off NPLs.

 

Interested in your collective insight and related hypotheses.

 

Also, does anyone know if the RBI is measuring over indebtedness levels (in some form or other) --- for ex. like South Africa does through its national credit regulator so you can see that some 50% of consumers are 'debt impaired,' which is behind by 3 or more monthly payments on a credit obligation and legally unable to borrow more.

 

Thanks in advance! Hope all is well in your corners of the globe.

 

Best,

Jami Solli

 


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Posted by: Jami Solli <jamisolli@gmail.com>
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RE: [MFP] query on Indian consumer debt levels

 

Dear Jami,

 

There is a journalist names P. Sainath, many of us have got to know him a bit, and his name to fame came with a book called 'everyone loves a good drought'. He is much more than that, and continue to do rural journalism in a very unique way. You may already have heard about him.

 

Among many other things he does, one of his passions is to promote and create 'people's journalism' where people tell their own stories. One the motivation for this initiative comes from the fact that corporate journalism has failed people, and continues to do so.

 

To your point, there is a people's archives of rural India (PARI) site that he has championed, with some wonderful, very diverse, people created everyday inspiring life stories from all different nooks and corners of rural India.  

 

Rural distress continues to be one of the key themes Mr Sainath is quite an authority on. I am sharing this link that provides some of the stories on suicide; and how most of the rural and agriculture distress is (hu)manmade. Each of the stories from him are backed with evidence and data, most of which comes from government's own sources.

 

https://ruralindiaonline.org/search/?q=suicide

 

Hope you find the stories informative, and useful, just to get the sense of nature and scale of issues. Have a look. And if you like, I will be happy to put you in touch with him/ his colleagues for further information.

 

Will like to hear more about your work on the subject as well.

 

Best!

 

Anuj

 

 

 

From: MicrofinancePractice@yahoogroups.com [mailto:MicrofinancePractice@yahoogroups.com]
Sent: Tuesday, October 25, 2016 5:07 PM
To: MicrofinancePractice@yahoogroups.com
Subject: Re: [MFP] query on Indian consumer debt levels

 

 

Thanks Professore!  Could you dig out your notes? That would be very helpful to see if the counseling center is still operational etc.  

 

And, I remembered you had done that research on the farmer suicides because we discussed that the Govt. was not interested to study how many women died :(

 

Thanks again!  Hope all is well in the UK.

 

Best,

Jami

 

On Tue, Oct 25, 2016 at 2:38 PM, 'Malcolm Harper' malcolm.harper@btinternet.com [MicrofinancePractice] <MicrofinancePractice@yahoogroups.com> wrote:

 

Dear Jami,

 

This may or may not be relevant, but in 2007 (or so) I did some work for NABARD (funded by SDC) in response to a request from the Minister of Agriculture for suggestions as to how he should respond to the rash of farmer suicides. We met some sad widows, and talked to bankers and others in various places, including Viddarbha in Maharashtra where there had been a particularly high number of suicides.

 

Bank of India (not the RBI, the Bank of that name) had just started what they believed was the only debt counselling service in India which was not for the urban middle class, in Viddarbha, and I spent some time with the person who ran it. I could send you my notes on that if you wish. One of our suggestions was that such a service should be set up more widely, but I don't know if anything came of it, and the Minister ignored most of our recommendations and chose instead to do another loan waiver, with the usual destructive effects on credit culture, and not much else.

 

Malcolm

 

Sent: Tuesday, October 25, 2016 7:12 PM

Subject: [MFP] query on Indian consumer debt levels

 

 

Greetings Group!

 

Have you or anyone you know ever tried to assess levels of over indebtedness in any part of India?

 

I am conducting research related a proposal to create debt counseling/mediation facilities.  The idea is to start one city where a consumer advocacy organization already has a consumer redress center that handles financial and other sector disputes.

 

We would assist consumers to develop a feasible budget and payments plan, and negotiate a new payment plan with their creditors or file bankruptcy relief where the situation warrants.  A related hypothesis is that the financial sector will gain by participating as they no longer have to hire thugs to debt collect, nor do they have to sell off NPLs.

 

Interested in your collective insight and related hypotheses.

 

Also, does anyone know if the RBI is measuring over indebtedness levels (in some form or other) --- for ex. like South Africa does through its national credit regulator so you can see that some 50% of consumers are 'debt impaired,' which is behind by 3 or more monthly payments on a credit obligation and legally unable to borrow more.

 

Thanks in advance! Hope all is well in your corners of the globe.

 

Best,

Jami Solli

 

__._,_.___
Posted by: Anuj Jain <ajain@stfx.ca>
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Re: [MFP] query on Indian consumer debt levels

 

Thanks Professore!  Could you dig out your notes? That would be very helpful to see if the counseling center is still operational etc.  

And, I remembered you had done that research on the farmer suicides because we discussed that the Govt. was not interested to study how many women died :(

Thanks again!  Hope all is well in the UK.

Best,
Jami

On Tue, Oct 25, 2016 at 2:38 PM, 'Malcolm Harper' malcolm.harper@btinternet.com [MicrofinancePractice] <MicrofinancePractice@yahoogroups.com> wrote:
 

Dear Jami,
 
This may or may not be relevant, but in 2007 (or so) I did some work for NABARD (funded by SDC) in response to a request from the Minister of Agriculture for suggestions as to how he should respond to the rash of farmer suicides. We met some sad widows, and talked to bankers and others in various places, including Viddarbha in Maharashtra where there had been a particularly high number of suicides.
 
Bank of India (not the RBI, the Bank of that name) had just started what they believed was the only debt counselling service in India which was not for the urban middle class, in Viddarbha, and I spent some time with the person who ran it. I could send you my notes on that if you wish. One of our suggestions was that such a service should be set up more widely, but I don't know if anything came of it, and the Minister ignored most of our recommendations and chose instead to do another loan waiver, with the usual destructive effects on credit culture, and not much else.
 
Malcolm
 
Sent: Tuesday, October 25, 2016 7:12 PM
Subject: [MFP] query on Indian consumer debt levels
 
 

Greetings Group!
 
Have you or anyone you know ever tried to assess levels of over indebtedness in any part of India?
 
I am conducting research related a proposal to create debt counseling/mediation facilities.  The idea is to start one city where a consumer advocacy organization already has a consumer redress center that handles financial and other sector disputes.
 
We would assist consumers to develop a feasible budget and payments plan, and negotiate a new payment plan with their creditors or file bankruptcy relief where the situation warrants.  A related hypothesis is that the financial sector will gain by participating as they no longer have to hire thugs to debt collect, nor do they have to sell off NPLs.

Interested in your collective insight and related hypotheses.

Also, does anyone know if the RBI is measuring over indebtedness levels (in some form or other) --- for ex. like South Africa does through its national credit regulator so you can see that some 50% of consumers are 'debt impaired,' which is behind by 3 or more monthly payments on a credit obligation and legally unable to borrow more.

Thanks in advance! Hope all is well in your corners of the globe.

Best,
Jami Solli


__._,_.___
Posted by: Jami Solli <jamisolli@gmail.com>
Reply via web post • Reply to sender • Reply to group • Start a New Topic • Messages in this topic (3)
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WARNING! If you hit REPLY, your message will go to the entire listserve, not just the original author!

.

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No comments:

Re: [MFP] query on Indian consumer debt levels

 

Dear Jami,
 
This may or may not be relevant, but in 2007 (or so) I did some work for NABARD (funded by SDC) in response to a request from the Minister of Agriculture for suggestions as to how he should respond to the rash of farmer suicides. We met some sad widows, and talked to bankers and others in various places, including Viddarbha in Maharashtra where there had been a particularly high number of suicides.
 
Bank of India (not the RBI, the Bank of that name) had just started what they believed was the only debt counselling service in India which was not for the urban middle class, in Viddarbha, and I spent some time with the person who ran it. I could send you my notes on that if you wish. One of our suggestions was that such a service should be set up more widely, but I don't know if anything came of it, and the Minister ignored most of our recommendations and chose instead to do another loan waiver, with the usual destructive effects on credit culture, and not much else.
 
Malcolm
 
Sent: Tuesday, October 25, 2016 7:12 PM
Subject: [MFP] query on Indian consumer debt levels
 
 

Greetings Group!
 
Have you or anyone you know ever tried to assess levels of over indebtedness in any part of India?
 
I am conducting research related a proposal to create debt counseling/mediation facilities.  The idea is to start one city where a consumer advocacy organization already has a consumer redress center that handles financial and other sector disputes.
 
We would assist consumers to develop a feasible budget and payments plan, and negotiate a new payment plan with their creditors or file bankruptcy relief where the situation warrants.  A related hypothesis is that the financial sector will gain by participating as they no longer have to hire thugs to debt collect, nor do they have to sell off NPLs.

Interested in your collective insight and related hypotheses.

Also, does anyone know if the RBI is measuring over indebtedness levels (in some form or other) --- for ex. like South Africa does through its national credit regulator so you can see that some 50% of consumers are 'debt impaired,' which is behind by 3 or more monthly payments on a credit obligation and legally unable to borrow more.

Thanks in advance! Hope all is well in your corners of the globe.

Best,
Jami Solli

__._,_.___
Posted by: "Malcolm Harper" <malcolm.harper@btinternet.com>
Reply via web post • Reply to sender • Reply to group • Start a New Topic • Messages in this topic (2)
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WARNING! If you hit REPLY, your message will go to the entire listserve, not just the original author!

.

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No comments:

[MFP] query on Indian consumer debt levels

 

Greetings Group!

Have you or anyone you know ever tried to assess levels of over indebtedness in any part of India?

I am conducting research related a proposal to create debt counseling/mediation facilities.  The idea is to start one city where a consumer advocacy organization already has a consumer redress center that handles financial and other sector disputes.

We would assist consumers to develop a feasible budget and payments plan, and negotiate a new payment plan with their creditors or file bankruptcy relief where the situation warrants.  A related hypothesis is that the financial sector will gain by participating as they no longer have to hire thugs to debt collect, nor do they have to sell off NPLs.

Interested in your collective insight and related hypotheses.

Also, does anyone know if the RBI is measuring over indebtedness levels (in some form or other) --- for ex. like South Africa does through its national credit regulator so you can see that some 50% of consumers are 'debt impaired,' which is behind by 3 or more monthly payments on a credit obligation and legally unable to borrow more.

Thanks in advance! Hope all is well in your corners of the globe.

Best,
Jami Solli

__._,_.___
Posted by: Jami Solli <jamisolli@gmail.com>
Reply via web post • Reply to sender • Reply to group • Start a New Topic • Messages in this topic (1)
Have you tried the highest rated email app?
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WARNING! If you hit REPLY, your message will go to the entire listserve, not just the original author!

.

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