I am currently in Hyderabad, visiting for a few weeks at the India School of Business. This morning's newspaper contained an item about how farmers in India obtained mortgages with very high interest rates, fell behind in their payments, and ultimately lost their properties to lenders.
The government of Maharashtra (the state that includes Mumbai) is contemplating legislation that would require the lenders to return title to the borrowers. The sentiment is understandable, but could undermine the ability of India to develop its fledgling mortgage market. The dilemma is depressingly familiar.
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