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Borrowing to survive: 93% of India's under ₹50K earners turn to cards, BNPL
A whopping 93% of salaried individuals earning under ₹50,000 per month now rely on credit cards, with a growing number turning to Buy Now, Pay Later (BNPL) products to manage daily expenses and working capital needs, as per a new study by Think360.ai, a CAMS company.
Based on behavioral data from over 20,000 borrowers, the research shows that credit cards have now become essential tools for short-term liquidity among India's underserved segments. Among the self-employed earning under ₹50,000/month, 85% use credit cards, while BNPL usage is also significant—18% among the self-employed and 15% among salaried users.
This shift is especially evident among those earning below ₹25,000/month, many of whom are New-to-Credit (NTC) or Existing-to-Credit (ETC) borrowers. These groups often juggle multiple loans, making them more vulnerable to defaults and late payments.
'Credit cards and BNPL are no longer aspirational luxuries—they've become financial necessities,' said Amit Das, CEO of Think360.ai. 'We must use alternative data and AI to responsibly expand access to credit while managing risk.'
Further, 74% of individuals earning under ₹20,000 take multiple loans to manage their needs, often leading to higher EMI defaults and increasing their lending risk profiles. The Think360.ai Lending Risk Score shows that 35% of self-employed and 25% of salaried borrowers fall into the high-risk category, demanding smarter credit evaluation techniques. These behaviors are deeply tied to India's evolving digital credit ecosystem.
Key Findings from the Study:
60%+ rely on personal and gold loans.
Only 28% of self-employed individuals invest, versus 75% of salaried individuals.
Insurance penetration: 71% (salaried) vs. 47% (self-employed).
UPI adoption is near-universal: 89% (salaried), 92% (self-employed).
Self-employed individuals are more likely to hold multiple loan accounts and use a mix of secured and unsecured credit options.
As a result, traditional credit scoring models may fall short in assessing these consumers. Think360.ai emphasizes the need for AI-based risk models that incorporate alternate data such as UPI history, mobile usage, GST filings, and digital payment patterns.
India's fintech sector disbursed over ₹92,000 crore in personal loans in FY23, accounting for 76% of all new loan originations by volume. Many of these are small-ticket loans averaging ₹10,000, especially targeted at borrowers without a formal credit history.
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The Hindu
16 minutes ago
- The Hindu
Trump's order to block 'woke' AI in government encourages tech giants to censor their chatbots
Tech companies looking to sell their artificial intelligence technology to the federal government must now contend with a new regulatory hurdle: proving their chatbots aren't 'woke.' U.S. President Donald Trump's sweeping new plan to counter China in achieving 'global dominance' in AI promises to cut regulations and cement American values into the AI tools increasingly used at work and home. But one of Mr. Trump's three AI executive orders signed Wednesday — the one 'preventing woke AI in the federal government' — marks the first time the U.S. government has explicitly tried to shape the ideological behaviour of AI. Several leading providers of the AI language models targeted by the order — products like Google's Gemini and Microsoft's Copilot — have so far been silent on Trump's anti-woke directive, which still faces a study period before it gets into official procurement rules. While the tech industry has largely welcomed Mr. Trump's broader AI plans, the anti-woke order forces the industry to leap into a culture war battle — or try their best to quietly avoid it. 'It will have massive influence in the industry right now,' especially as tech companies are already capitulating to other Trump administration directives, said civil rights advocate Alejandra Montoya-Boyer, senior director of The Leadership Conference's Center for Civil Rights and Technology. The move also pushes the tech industry to abandon years of work to combat the pervasive forms of racial and gender bias that studies and real-world examples have shown to be baked into AI systems. 'First off, there's no such thing as woke AI,' Montoya-Boyer said. 'There's AI technology that discriminates and then there's AI technology that actually works for all people.' Molding the behaviours of AI large language models is challenging because of the way they're built and the inherent randomness of what they produce. They've been trained on most of what's on the internet, reflecting the biases of all the people who've posted commentary, edited a Wikipedia entry or shared images online. 'This will be extremely difficult for tech companies to comply with,' said former Biden official Jim Secreto, who was deputy chief of staff to U.S. Secretary of Commerce Gina Raimondo, an architect of many of Biden's AI industry initiatives. 'Large language models reflect the data they're trained on, including all the contradictions and biases in human language.' Tech workers also have a say in how they're designed, from the global workforce of annotators who check their responses to the Silicon Valley engineers who craft the instructions for how they interact with people. Mr. Trump's order targets those 'top-down' efforts at tech companies to incorporate what it calls the 'destructive' ideology of diversity, equity and inclusion into AI models, including 'concepts like critical race theory, transgenderism, unconscious bias, intersectionality, and systemic racism.' The directive has invited comparison to China's heavier-handed efforts to ensure that generative AI tools reflect the core values of the ruling Communist Party. Secreto said the order resembles China's playbook in 'using the power of the state to stamp out what it sees as disfavored viewpoints." The method is different, with China relying on direct regulation by auditing AI models, approving them before they are deployed and requiring them to filter out banned content such as the bloody Tiananmen Square crackdown on pro-democracy protests in 1989. Mr. Trump's order doesn't call for any such filters, relying on tech companies to instead show that their technology is ideologically neutral by disclosing some of the internal policies that guide the chatbots. 'The Trump administration is taking a softer but still coercive route by using federal contracts as leverage,' Secreto said. 'That creates strong pressure for companies to self-censor in order to stay in the government's good graces and keep the money flowing.' The order's call for 'truth-seeking' AI echoes the language of the president's one-time ally and adviser Elon Musk, who has made it the mission of the Grok chatbot made by his company xAI. But whether Grok or its rivals will be favoured under the new policy remains to be seen. Despite a 'rhetorically pointed' introduction laying out the Trump administration's problems with DEI, the actual language of the order's directives shouldn't be hard for tech companies to comply with, said Neil Chilson, a Republican former chief technologist for the Federal Trade Commission. 'It doesn't even prohibit an ideological agenda,' just that any intentional methods to guide the model be disclosed, said Chilson, head of AI policy at the nonprofit Abundance Institute. 'Which is pretty light touch, frankly.' Chilson disputes comparisons to China's cruder modes of AI censorship. 'There is nothing in this order that says that companies have to produce or cannot produce certain types of output,' he said. 'It says developers shall not intentionally encode partisan or ideological judgments.' With their AI tools already widely used in the federal government, tech companies have reacted cautiously. OpenAI on Thursday said it is awaiting more detailed guidance but believes its work to make ChatGPT objective already makes the technology consistent with Mr. Trump's directive. Microsoft, a major supplier of online services to the government, declined to comment. Musk's xAI, through spokesperson Katie Miller, a former Trump official, pointed to a company comment praising Mr. Trump's AI announcements but didn't address the procurement order. xAI recently announced it was awarded a U.S. defence contract for up to $200 million, just days after Grok publicly posted a barrage of antisemitic commentary that praised Adolf Hitler. Anthropic, Google, Meta, and Palantir didn't respond to emailed requests for comment Thursday. The ideas behind the order have bubbled up for more than a year on the podcasts and social media feeds of Mr. Trump's top AI adviser David Sacks and other influential Silicon Valley venture capitalists, many of whom endorsed Trump's presidential campaign last year. Their ire centered on Google's February 2024 release of an AI image-generating tool that produced historically inaccurate images before the tech giant took down and fixed the product. Google later explained that the errors — including generating portraits of Black, Asian and Native American men when asked to show American Founding Fathers — were the result of an overcompensation for technology that, left to its own devices, was prone to favouring lighter-skinned people because of pervasive bias in the systems. Trump allies alleged that Google engineers were hard-coding their own social agenda into the product. 'It's 100% intentional,' said prominent venture capitalist and Trump adviser Marc Andreessen on a podcast in December. 'That's how you get Black George Washington at Google. There's override in the system that basically says, literally, Everybody has to be Black.' Boom. There's squads, large sets of people, at these companies who determine these policies and write them down and encode them into these systems.' Sacks credited a conservative strategist who has fought DEI initiatives at colleges and workplaces for helping to draft the order. 'When they asked me how to define woke,' I said there's only one person to call: Chris Rufo. And now it's law: the federal government will not be buying WokeAI,' Sacks wrote on X. Rufo responded that he helped 'identify DEI ideologies within the operating constitutions of these systems.'


Time of India
an hour ago
- Time of India
After CEO Andy Byron, Astronomer HR head Kristin Cabot resigns, removed from leadership page
Days after former Astronomer CEO Andy Byron resignation , the company's HR head Kristin Cabot has also stepped down. Cabot resigned after the fallout from the recent 'Kiss Cam' incident which happened at the Coldplay concert in Boston. Both the executives were caught by the camera cuddling each other during a recent Coldplay concert. The couple after being captured by the camera looked startled, with Cabot turning away and Byron ducking. Coldplay frontman Chris Martin also said jokingly, 'Either they're having an affair, or they're just very shy.' The clip soon went viral and garnered millions of views. Astronomer HR head Kristin Cabot resigns As reported by Business Insider, Astronomer has confirmed that Kirstin Cabot has resigned from her position of company's chief people officer and is no longer associated with the company. 'Kristin Cabot is no longer with Astronomer; she has resigned,' the company told BI. After the resignation, Cabot's profile has also been removed from the company's leadership page. However, the company has not yet released any official statement on the resignation of Kirstin Cabot. The resignation from Kristin Cabot comes days after the former CEO Andy Byron stepped down. Andy Byron resigned after he was caught in a cheating scandal with the company's HR head Kristin Cabot at a Cold Play event. Announcing Andy Byron's resignation, Astronomer said in a statement, "Andy Byron has tendered his resignation, and the Board of Directors has accepted. The Board will begin a search for our next Chief Executive as Cofounder and Chief Product Officer Pete DeJoy continues to serve as interim CEO.' Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Remarkable Pictures from the Moments That Made History Undo by Taboola by Taboola Leadership reshuffle at Astronomer After the incident the AI startup announced the appointment of Astronomer co-founder and Chief Product Officer Pete DeJoy as the new CEO. The company, which recently raised $93 million in funding, is working to stabilize operations and restore its public image.
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First Post
an hour ago
- First Post
Trade pact, UPI and more: How PM Modi's visit will reset ties with Maldives
India and Maldives are looking to reset ties as Prime Minister Narendra Modi heads to Male today (July 25). Modi's trip comes on the invitation of President Mohamed Muizzu. But what do we know about the PM's two-day trip? What can we expect? read more India and Maldives are looking to reset ties. The development comes as Prime Minister Narendra Modi heads to the Maldives today (July 25) after a trip the UK. India and the UK signed a landmark free trade agreement in the backdrop of Modi's visit. Modi's trip to Maldives is his first since the new Mohamed Muizzu administration took charge in November 2023. But what do we know about Modi's trip? And what can we expect from it? STORY CONTINUES BELOW THIS AD Let's take a closer look: What do we know about the trip? Modi will be in Maldives today (July 25) and tomorrow (July 26). Modi will be the guest of honour as Maldives celebrates the 60th anniversary of its independence. Modi's trip also comes as India and Maldives mark six decades since the establishment of diplomatic relations. It is Modi's third visit to the island nation since coming to power in 2014. India was among the first to recognise the Maldives and establish diplomatic relations after it gained independence in 1965. The prime minister will hold a bilateral meeting with President Muizzu. Prime Minister Narendra Modi's trip comes after India and the UK signed a landmark free trade agreement. Image courtesy: X His trip is the first state visit Muizzu is hosting since taking power in late 2023. He will also meet other senior political leaders. Modi is also set to inaugurate some infrastructure projects. 'I will join the celebrations marking the 60th anniversary of the Independence of Maldives. This year also marks the 60th anniversary of the establishment of diplomatic relations between our two countries. I look forward to my meetings with President Muizzu and other political leadership, to advance our joint vision of a Comprehensive Economic and Maritime Security Partnership, and to strengthen our cooperation for peace, prosperity and stability in the Indian Ocean Region,' PM Modi said in his pre-departure statement. What can we expect? India is reportedly set to launch its UPI services in Maldives. The two countries are also slated to begin discussions on a free trade agreement (FTA) 2025. The two countries previously signed a trade agreement in 1981. Bilateral trade between the two countries was valued at around $548 million as of 2023. It has more than doubled since 2020 when bilateral trade was valued at around $245 million. STORY CONTINUES BELOW THIS AD India mainly imports scrap metals from the Maldives. It exports engineering and industrial products such as drugs and pharmaceuticals, radars, cement, agricultural produce such as rice, spices, fruits, vegetables and poultry produce. This gains significance in light of the fact that Male earlier signed an FTA with China – which came into effect on January 1. A possible announcement regarding Maldives National Defence Force (MNDF) building is also in the offing. Modi and Muizzu will also review the 'Comprehensive Economic and Maritime Security Partnership' the two countries agreed to in October 2024. India is reportedly set to launch its UPI services in Maldives. 'The two leaders will also take stock of the progress in the implementation of the India-Maldives Joint Vision for a 'Comprehensive Economic and Maritime Security Partnership', adopted during the State Visit of the President of Maldives to India in October 2024,' said MEA. According to officials, this partnership has become the 'guiding framework' for the relationship. The two countries are likely to announce steps to combat drug trafficking in the Indian Ocean and Arabian Sea. STORY CONTINUES BELOW THIS AD This includes stepping up cooperating in defence and maritime security including sharing of intelligence. Muizzu has described drugs as a national scourge and vowed to make rooting it out a priority in his administration. A number of MoUs on infrastructure and capacity building that will deepen cooperation and economic ties are also likely to be signed. Step to mend relations Modi's visit is yet another step towards resetting relations between the two countries. Muizzu, who is known to be pro-China, came to power on an 'India Out' campaign. Muizzu, remember, had demanded that Indian military personnel in the Maldives leave the island. Modi, regardless, was the first world leader to congratulate Muizzu on his victory. India and Maldives' ties nosedived further in January 2024 after three deputy ministers in the then cabinet made derogatory remarks about Modi. This nadir resulted in many in India carrying out a boycott campaign that badly hit Madives' tourism. The island nation is hugely dependent on tourism to fill its coffers. However, ties between the two countries slowly began to mend. Muizzu late last year arrived in India for a state visit. STORY CONTINUES BELOW THIS AD At the time, the two countries took began efforts at rebuilding the relationship. 'Patience has its benefits; it helps if you don't give in to the compulsion and expectation to retaliate against each provocation,' a senior government source told The Times of India. Foreign Secretary Vikram Misri pointed to these developments in his remarks on Tuesday. Foreign Secretary Vikram Misri mentioned the help India had provided Maldives during tough times. PTI Misri said Maldives has been an extremely important partner in India's Neighbourhood First policy and Mutual and Holistic Advancement for Security and Growth Across Regions (MAHASAGAR) vision. 'There will always be events that impact or try to intrude on the relationship. But this is testimony to the kind of attention paid to the relationship, including at the highest levels. We've continued to work at it, and the results are visible. We've also had close discussions with our partners in the Maldives to provide clarity and assurances about our bilateral intentions, and the results are evident', Misri said. India and Maldives may also decide to establish a Rs 30-billion swap line. STORY CONTINUES BELOW THIS AD This comes after Male has spent most of the $400 million comprising the first two currency swap agreements with New Delhi. India's outreach to Maldives Misri mentioned the help India had provided Maldives during tough times. 'Our recent assistance has improved the foreign exchange position of the Maldives, which has been cited by international financial organisations, including the IMF, as a positive factor that has helped the Maldives avoid difficult outcomes. My understanding is that the $400 million swap line has been almost completely utilised, and now the 30 billion rupee Indian swap line might also be drawn upon," Misri added. New Delhi is also financing several projects in Male via concessional credit and buyer's credit facilities. This includes the Greater Malé Connectivity Project, which will link four islands. India in May 2024 had announced that it would let a $50 million loan roll over. This came after US ratings agency Fitch downgraded Maldives' credit rating to 'junk' status. India over the years has provided the Maldives' with over a billion dollars in assistance. STORY CONTINUES BELOW THIS AD Muizzu himself acknowledged India's role during his visit last year. 'India is a key partner in the socio-economic and infrastructure development of the Maldives, and has stood by the Maldives during our times of need.' Former Maldives president Mohamed Nasheed said, 'Maldives is positioned across some of the most navigable waters of the region of the Indian Ocean. It stretches 1,000 kilometres from north to south and another 600 kilometres from east to west. Prime Minister Modi's visit to the Maldives reaffirms the strategic importance India places on its long-standing relationship with us'. The Federation of Indian Export Organisations (FIEO) said on Wednesday that Prime Minister Narendra Modi's visit to the United Kingdom and the Maldives will boost Indian exports and promote regional stability in the Indian Ocean region. FIEO president SC Ralhan said that this visit comes at a pivotal moment of Comprehensive Free Trade Agreement (FTA) negotiations reaching the final stages. With inputs from agencies STORY CONTINUES BELOW THIS AD