Budget 2019: Starting with better access to credit to helping them reduce the cost of borrowing, these measures provided the sector with a positive outlook.

Industry experts believe, low level of financial inclusion within the country is a critical factor, which restricts the credit flow for both personal consumption as well as for financing entrepreneurial endeavors. Hence, it is expected that the government encourages the online P2P lending that has integrated the age-old concept of lending with the technology-driven marketplace and is bridging the credit gap that exists. To encourage lenders, the government should bring in special tax rebate to lenders who fund loan requirements of MSMEs. Says Rajat Gandhi, CEO & Founder, Faircent, “The Finance Minister should also consider to exempt investment in P2P lending from taxation, along with allowing defaults from loans to be considered as capital loss when filing returns. Also putting pressure on rates and easing the current liquidity crunch, this would increase investments by lenders in P2P lending unlocking supply side.

Click here to read more: https://www.financialexpress.com/budget/budget-2019-key-expectations-of-the-fintech-industry-from-budget/1460345/