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By turning local credit intelligence into standardized, high-quality institutional investments, securitisation helps capital flow smoothly to the hardworking individuals and small enterprises building India’s $5-trillion economy from the ground up, says Ashish Mehrotra of Northern Arc
Imagine a modest tailor in a tier-three Indian town who needs a ₹50,000 personal loan to set up a shop in a prominent location. A local non-banking financial company underwrites the loan based on his daily cash flows and grants the credit. But once that loan is booked, the lender's capital sits locked in that single contract for three years. It is like a runner carrying a single bucket of water across a long desert; no matter how fast the runner moves, he can only carry one bucket at a time, leaving thousands of neighbouring fields dry while a giant municipal reservoir of institutional capital sits untapped miles away.
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