The startups will get an additional benefit, should the government provide a conducive working environment. The government can replicate the entire reporting structure as well as the rental subsidies for start-ups, similar to the practice followed in countries like US and China. This will allow companies, like ours, to make optimum utilization of time and effort towards effective planning and execution of business model. Improvisation on such infrastructures can lead to a healthy growth of new businesses.
Additionally, we also expect the government should think of new ways to boost sectors like P2P lending. Eg.- Enable tax exemption for the lenders on P2P lending platforms, under section 80C. This will result in raising the trust bar and credibility, leading to more and more people investing in such platforms. It will also bring in a good enough capital infusion in the P2P lending space.
Lastly, the legal structure can be more stringent towards defaulted borrowers in the entire financial system, so as to reduce this number in the long run.
Bhavin Patel, Founder & CEO, LenDenClub