Finance in India was a huge problem before the advent of the companies which are going to pay loans to the people. Pooling up such huge amounts of money in a short time is a tough time for the people. They would be fine to pay the amount of lesser sums, but they would not be able to pay huge amounts. They would have to see that they lend the amount from a third party and then finish the deal. The people were grateful enough to have the money lenders.
The change in the system and the management:
There were money lenders in the past also. But then, there was no restriction on them. They used to have a personal credit score from where they used to lend the money to the people. These lenders did not have any rules and regulations on them and they had a chance where they would see to it that they charged their public with high rates of interest. This way, eventually, the public found it to be more stressful than paying the money. They had the pressure on them that they had to pay the money on time and return it back to the lenders. If there was a case where they would not return it back on time, they had to face serious consequences as such. The people had to repay and this intensity grew.
They needed someone to see to it that they are going to charge a nominal out if interest and all that. In view of this, the people themselves came up with regulations clear for them. They have a proper system which is managing them and they will have a proper systematic function that is happening with them.
There are payday loans as well where the people can see to it that they are able to take as much money as they want and return it off as soon as they get their salary back. The concepts like these have helped the people in a great way.