* PRIVATE LENDING (Secondary Market Lending) EXIT PLANS
9/18/2013 11:12 AM: Abhishek: New subject – “Private Lending (secondary market lending) Exit Plans” —-as easiest way is the Entry.
9/18/2013 11:13 AM: Abhishek: Nalin, Rajeev, Vinit, Sandeep – this time let’s have Ur words as well.
9/18/2013 11:19 AM: +91 96 24 733099: Subject thought needs more clarity…..private lending plan and secondary mkt lending, what is broad diff.
9/18/2013 11:20 AM: Abhishek: Shail, read again in this way – Pvt lending as in Secondary mkt lending.
9/18/2013 11:21 AM: Abhishek: If still not clear then this is also called Unsecured loan from Pvt Parties.
9/18/2013 6:59 PM: Abhishek: Guys wake wake! Bhor bhae…
9/18/2013 7:03 PM: Abhishek: Pvt lending Exit Plan – could need some detail analysis abt the balance amt, timing, PTD paid amt, Funds availability, Lender personality, His flexibility etc.
9/18/2013 7:05 PM: Abhishek: Planning is important and same execution. Going upfront for settlement may sounds good in certain circumstance when things are much clear and certain and do believe in grabbing peace ASAP.
9/18/2013 7:07 PM: Abhishek: Else, Piecemeal distribution, Rational distribution, as come as serve basis, Time leverage to achieve lower settlement.
9/18/2013 7:08 PM: Abhishek: Either of these methods would require a proper planning in all regards. Though always ready for unwanted deviation/s.
9/18/2013 6:42 PM: Vinit: I don’t get this topic. Plz elaborate for a tech person with no finance background.
9/18/2013 7:38 PM: Rajeev: Topic is all abt getting finance from unorganized market like money lenders who charge heavy interest from borrowers
9/18/2013 7:40 PM: Rajeev: And what should be exit plan for borrowers who got tapped in heavy debt
9/18/2013 7:42 PM: Rajeev: In some of the cases interest is as high as 60% p.a
9/18/2013 8:36 PM: Abhishek: Rajeev mentioned very well; Vinit, this has been a tradition (specially in small cities, Town and village), where if u have immediate need and don’t have organized security to offer against the loan, u just approach local ‘Baniya’, ‘Jamidar’, ‘Businessman’ to get that money on very high interest rate. So most of the time it’s just become so hugh that u just don’t know how to exit.
9/18/2013 8:39 PM: Chetash: City named Kapadwanj where in most practice is followed.
9/18/2013 8:39 PM: Chetash: They charge 2% p.m on what they provide.
9/18/2013 8:41 PM: Chetash: In rural areas this is mainly followed as they need money without much paper work so they agree to pay even more.
9/18/2013 8:41 PM: Nalin: We need to understand why people are going for such funding…
9/18/2013 8:42 PM: Nalin: Going mainly for.consumption purpose
9/18/2013 8:42 PM: Nalin: Like marriage..medical reason…
9/18/2013 8:42 PM: Chetash: Nalinbhai – People are less educated and here CiBIL does not play any role.
9/18/2013 8:43 PM: Abhishek: Yup, immediate need and these options are not for any wise investment
9/18/2013 8:43 PM: Nalin: So lending was taken against consumption and not for any earning…
9/18/2013 8:43 PM: Chetash: Mainly because money lenders do not check CIBIL so they can get fund easily
9/18/2013 8:43 PM: Abhishek: Chetash, education is the forcing factor but the need
9/18/2013 8:43 PM: Chetash: without ITR and audit report etc.
9/18/2013 8:44 PM: Nalin: Since they do not have earning to repay such loan…they become trap…
9/18/2013 8:44 PM: Chetash: I have seen many taking for Business Expansion , Family need etc
9/18/2013 8:44 PM: Nalin: True banks are checking cibil…
9/18/2013 8:44 PM: Abhishek: If I need some funds for immediate health, family need. What option someone could have. I have seen people start avoiding.
9/18/2013 8:45 PM: Nalin: Even banks r providing such loan like credit card loan, personal…
9/18/2013 8:45 PM: Chetash: True they are in need of funds urgently they forego the end result and get themselves trap.
9/18/2013 8:45 PM: Abhishek: I meant Education is NOT the major factor behind these loans
9/18/2013 8:46 PM: Chetash: No Education is not major factor
9/18/2013 8:46 PM: Chetash: Cc and personal loans needs some minimum docs where as money lenders ask for kyc
9/18/2013 8:47 PM: Abhishek: Yup, frankly even knowing that even I could go for these if this involves any urgent need, our my Own is at stake
9/18/2013 8:47 PM: Nalin: If u have no earning source or capital appreciation then u will made default…
9/18/2013 8:49 PM: Chetash: Many have burned their fingers by paying high interest , Many money lenders have faced defaults …..but this is being continued as this provide instant money though at high price.
9/18/2013 8:50 PM: Nalin: Be it bank or lender…we should have back up plan to repay the loan…otherwise it is a trap…
9/18/2013 8:52 PM: Chetash: How can we stop this ?? Are there any options/ways and means ??
9/18/2013 9:01 PM: Abhishek: The raised subject is abt ‘How to exit in this situation’
9/18/2013 9:04 PM: Rajeev: To make it more clear, without having that much fund in hand, how to get exit from such a trap
9/18/2013 9:06 PM: Abhishek: Yup, then only it would essentially need some kind of exit plan.
9/18/2013 9:10 PM: Rajeev: Many innocent people opt for sucide,just to avoid harassment day to day and in Liu of any support from society, many times entire family take this extreme steps
9/18/2013 9:11 PM: Nalin: Surrender the mortgaged asset…and take the balance amt
9/18/2013 9:12 PM: Rajeev: I have seen govt and law is also helpless and not much supportive in most of the cases
9/18/2013 9:12 PM: Chetash: Surrender Gold and Jewellery they have.
9/18/2013 9:13 PM: Rajeev: If that too is not enough, also its ok for gold and other such items which is not essential for live hood
9/18/2013 9:15 PM: Chetash: Exit means a plain vanilla exit…..Badme pata chala kahi aur se 3% pe lekar yeah debt pay off kiya.
9/18/2013 9:16 PM: Abhishek: An Exit
9/18/2013 9:16 PM: Abhishek: Full exit, no Cap rolling
9/18/2013 9:17 PM: Rajeev: True
9/19/2013 1:10 AM: Chetash: What I think is one should not repay at the cost of Basic livelihood. Not against residence mortgaged. Against Gold can do , against Insurance policy can do etc
9/19/2013 11:48 AM: Abhishek: 1) I feel, the Exit solution shall be unique to each situation and the very first require to analyze all the facts and compile reasonably complete info.
9/19/2013 11:52 AM: Abhishek: 2) Then analyze possible options with few knowledgeable people (could be advise to consult lawyer for the few legal effects, and options – Negotiable instrument act, Bankruptcy law, Contract and Stamps law etc).
9/19/2013 11:53 AM: Abhishek: 3) Purse decided plan with keeping plan B and C (whatever u decide).
9/19/2013 11:55 AM: Abhishek: 4) Separate emotion out of this every time, there is nothing good abt this.
9/19/2013 11:56 AM: Abhishek: 5) Ur settlement offer should go lower than 50% by keeping in mind further negotiation room + future changes etc.
9/19/2013 11:58 AM: Abhishek: 6) Always polite and put a genuine excuse for any negotiation. Do accept ur mistakes (if any) but always firm with what u could best.
9/19/2013 12:01 PM: Abhishek: 7) We normally get scared becoz we don’t know…same logic behind “Why we fear of darkness in a room; becoz we don’t know what is there behind darkness. So bottom-line “Unknown is the reason of fear”. Here it meant find out more of more info, knowledge, and law abt ur matter.
9/19/2013 12:02 PM: Abhishek: I could go on, but these are the keys.