Private Lending in India.

Abstract

The Indian economy is a fast-developing economy and it has a regulated structure of banks and non-banking financial companies for meeting financial needs of developing businesses. Besides the regulated lending market, India also has a parallel market of money lending by moneylenders. Rural and urban households as well as Micro, Small and Medium Enterprises in India rely heavily on private lending or unorganized/unregulated financial sector. The purpose of this report is to present the regulatory framework and issues relating to private money lending structure in India.