#531 Smart Lending: Why Business Loans Are Better Than Consumer Debt with Y S Chakravarti
03/14/25 • 44 min
Why do business loans drive economic growth while consumer debt can be risky? In this conversation with Y.S. Chakravarti, we explore the power of smart lending, how financing entrepreneurs creates jobs, and why funding business assets is better than fueling consumption.From real-world lending experiences to lessons on financial discipline, this discussion covers:1. The key differences between business loans and consumer debt2. Why smart lending supports MSMEs and long-term financial stability3. How a ₹50,000 loan helped build a ₹5,000 crore business4. The psychology of borrowing and repayment behavior5. The future of finance: Human insights vs. digital lending models(00:00) Introduction(01:20) An anecdote from Mr. Chakravarti’s early career(05:45) Growth of Shriram Finance(07:34) Truck Finance and Earning Assets(11:22) Why is Shriram Finance amalgamated?(12:55) Main income streams(15:07) No unsecured credit and why(18:53) 2 Wheeler business(21:38) Views on the technology and the digital world(25:00) Customer Acquisition(28:18) RBI reducing the risk weights(30:00) Expansion in Physical Branches v Digital platforms(32:39) Growth hinges on Transportations and MSMEs(37:24) Anecdote on what to avoid (learning from mistakes)(41:10) What can young people learn from the lending business?Smart lending is about more than just providing money—it’s about supporting entrepreneurs, businesses, and long-term financial success. Understanding the difference between business loans and consumer debt is essential for making better financial decisions.
The Core and The Core Report is ad supported and FREE for all readers and listeners. Write in to [email protected] for sponsorships and brand studio requirements
For more of our coverage check out thecore.in
Follow us on:
Twitter | Instagram | Facebook | Linkedin | ...
Why do business loans drive economic growth while consumer debt can be risky? In this conversation with Y.S. Chakravarti, we explore the power of smart lending, how financing entrepreneurs creates jobs, and why funding business assets is better than fueling consumption.From real-world lending experiences to lessons on financial discipline, this discussion covers:1. The key differences between business loans and consumer debt2. Why smart lending supports MSMEs and long-term financial stability3. How a ₹50,000 loan helped build a ₹5,000 crore business4. The psychology of borrowing and repayment behavior5. The future of finance: Human insights vs. digital lending models(00:00) Introduction(01:20) An anecdote from Mr. Chakravarti’s early career(05:45) Growth of Shriram Finance(07:34) Truck Finance and Earning Assets(11:22) Why is Shriram Finance amalgamated?(12:55) Main income streams(15:07) No unsecured credit and why(18:53) 2 Wheeler business(21:38) Views on the technology and the digital world(25:00) Customer Acquisition(28:18) RBI reducing the risk weights(30:00) Expansion in Physical Branches v Digital platforms(32:39) Growth hinges on Transportations and MSMEs(37:24) Anecdote on what to avoid (learning from mistakes)(41:10) What can young people learn from the lending business?Smart lending is about more than just providing money—it’s about supporting entrepreneurs, businesses, and long-term financial success. Understanding the difference between business loans and consumer debt is essential for making better financial decisions.
The Core and The Core Report is ad supported and FREE for all readers and listeners. Write in to [email protected] for sponsorships and brand studio requirements
For more of our coverage check out thecore.in
Follow us on:
Twitter | Instagram | Facebook | Linkedin | ...
Previous Episode
#530 The Stock Markets Struggle Against Headwinds
On Episode 530 of The Core Report, financial journalist Govindraj Ethiraj talks to Ketan Dalal, founder of Katalyst Advisors and former Managing Partner (West) and Joint Tax Leader of PwC India.
SHOW NOTES
(00:00) The Take: Cooked In Washington and Served in India
(05:29) The stock markets struggle against headwinds
(06:26) Inflows into Mutual Funds fall to 10-month low
(07:16) Retail inflation down to 7-month low of 3.6%
(10:18) What should India do on capital gains tax?
(24:26) Does the US Commerce Secretary understand Commerce, asks the WSJ?
The Core and The Core Report is ad supported and FREE for all readers and listeners. Write in to [email protected] for sponsorships and brand studio requirements
For more of our coverage check out thecore.in
Follow us on:
Twitter | Instagram | Facebook | Linkedin | Youtube
Next Episode
#532 Why Retail Investing can be Dangerous
On Episode 532 of The Core Report, financial journalist Govindraj Ethiraj talks to Deepak Jayaraman, leadership coach and host of the podcast Play To Potential. We also feature an excerpt from our Weekend Edition interview with Y S Chakravarti, Managing Director and CEO at Shriram Finance.
SHOW NOTES
(00:00) Stories of the Day
(00:50) Why retail investing can be dangerous
(07:30) Gold prices hit an all time high on continued uncertainty
(09:37) Why do we get messages offering us loans even if we don’t want them?
(15:00) The China Xi Put, why China is an increasingly attractive market for investors
(17:38) How should CEOs and business leaders approach this era of tariff uncertainty
The Core and The Core Report is ad supported and FREE for all readers and listeners. Write in to [email protected] for sponsorships and brand studio requirements
For more of our coverage check out thecore.in
Follow us on:
Twitter | Instagram | Facebook | Linkedin | Youtube
If you like this episode you’ll love
Episode Comments
Generate a badge
Get a badge for your website that links back to this episode
<a href="https://goodpods.com/podcasts/the-core-report-283685/531-smart-lending-why-business-loans-are-better-than-consumer-debt-wit-87430319"> <img src="https://storage.googleapis.com/goodpods-images-bucket/badges/generic-badge-1.svg" alt="listen to #531 smart lending: why business loans are better than consumer debt with y s chakravarti on goodpods" style="width: 225px" /> </a>
Copy