Interesting post-Rahul... Can banks or their subsidiaries act as LSP....IN other words, what are the criteria for someone to become LSP.. Currently, I guess Ispirt approved 6-7 players
Hi Anil, very good question - a bank wouldn't be able to become an LSP since the LSP is an agent of the borrower and the bank (as a capital provider) can't be so.
As for a banking subsidiary, I don't see why not provided it isn't a wholly owned subsidiary (conflict of interest at a Group level).
Typically, the LSP is meant for consumer technology platforms or other offline "associations" that aggregate large volumes of individuals who may have a requirement to access formal credit.
Thanks a lot for your answer Rahul.. Two more question if I may....if over period of time LSP becomes popular two things will happen 1) just like we buy flight tickets on makemytrip based on price, we would take loans based solely on interest rate 2) Banks will loose control over distribution and technogy companies will control the distribution. In this case who will own customers and PSU banks based on their low cost of funds can provide loans at cheaper rate of interest....How these two things will impact banking industry? ... thanks again...
Interesting post-Rahul... Can banks or their subsidiaries act as LSP....IN other words, what are the criteria for someone to become LSP.. Currently, I guess Ispirt approved 6-7 players
Hi Anil, very good question - a bank wouldn't be able to become an LSP since the LSP is an agent of the borrower and the bank (as a capital provider) can't be so.
As for a banking subsidiary, I don't see why not provided it isn't a wholly owned subsidiary (conflict of interest at a Group level).
Typically, the LSP is meant for consumer technology platforms or other offline "associations" that aggregate large volumes of individuals who may have a requirement to access formal credit.
Hi Rahul we are Corporate Agent and looking for building ISPIRT platform, Are we eligible in making it
Thanks a lot for your answer Rahul.. Two more question if I may....if over period of time LSP becomes popular two things will happen 1) just like we buy flight tickets on makemytrip based on price, we would take loans based solely on interest rate 2) Banks will loose control over distribution and technogy companies will control the distribution. In this case who will own customers and PSU banks based on their low cost of funds can provide loans at cheaper rate of interest....How these two things will impact banking industry? ... thanks again...