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It's easy to lend anywhere. Where it gets complicated is when you're trying to borrow. From my experience the popularity of loan sharks has a lot more to do wi
by cookie_monsta 7y ago
It's easy to lend anywhere. Where it gets complicated is when you're trying to borrow.
From my experience the popularity of loan sharks has a lot more to do with the fact that banks traditionally have seen no value in small, short term loans (which is basically what a credit card transaction is).
Interestingly enough, in many places where we worked and proved that "poor" does not necessarily equate to "unreliable" those same banks are starting to offer microcredit-like[1] loans, presumably because they've crunched the numbers and decided that the volume makes it a viable proposition even if the margin is thin.
[1] "Microcredit-like" because banks' offerings are obviously profit-oriented whereas traditional microcredit tends towards a community development focus
- jstanley 7y ago> It's easy to lend anywhere. There are quite a lot of regulations surrounding lending in the "developed" world. It's not easy for you or I to just go out one day and set up shop trying to lend money.
- cookie_monsta 7y agoAh, well if we are talking about regulated lending that would be a different kettle of fish. Although some recent examples spring to mind where the developed world's financial lending regulations could have been a bit tighter ;)
- hug 7y agoIt's only not easy if you intend to do it legally. If you don't, it's really easy. I mean like "you can start running payday loans with a paypal account, a reddit account, and 10 minutes to read an FAQ" level of easy: reddit.com/r/borrow Some of the loans on the new page are over 4000% APR, and the lenders are (presumably, I don't actually know, but whatever) from the "developed" world.