will the bank ever lend any money to these three businessmen? so that they can move out of the slum? they've been working there, for the last twenty years, honestly and hard for more hours, every day, than any one in the bank itself. for twenty long years. does the bank trust them?
we can safely assume many of the employees in the bank know these three businessmen- some of them buy cigarettes, paan, others vegetables etc., some of them might even know that these three businessmen borrow money from moneylenders at very high interest, much higher than what borrowers from the bank pay. and also that they almost, always repay their loans on time. with interest. so, why doesn't the bank lend them money? they could definitely use it, reduce their costs, expand their profits and their businesses.
that's my question for all those sneering at american greed, gloating over the death of their banks, at their subprime crisis: why don't indian banks lend money to honest indians? the wikipedia says:
subprime lending is the practice of making loans to borrowers who do not qualify for market interest rates owing to various risk factors, such as income level, size of the down payment made, credit history, and employment status.you see american capitalist greed, i see loans for people who do not qualify. in my view, the americans are human, you're definitely not. forget houses- 70% of indians do not have access to proper toilets. will indian banks ever lend money to those people? to groups who wish to build, say, community toilets?
no, you can't trust the indian poor. they will probably run away with the toilets.