Fintech product to help India's auto-rickshaw drivers break a cycle of informal debt

Auto-rickshaw drivers in India frequently find that the money they earn does not cover what they need to spend at the moment they need to spend it. To bridge the gap they borrow from informal lenders at high cost, and many end up taking a new loan to pay off the previous one, so the debt never goes away. How would you use technology to help these drivers get out of this cycle? Explain which drivers you would focus on, what is driving the problem, what you would build first, and how you would measure whether it works. ```hint Diagnose before you build Ask why the shortfall keeps coming back and why the informal lender keeps winning. Compare the rhythm and predictability of a driver's earnings with the timing of their largest expenses, and consider what a bank cannot see about this driver today. ``` ### Clarifying Questions - Are we building as a lender, as a payments or software company, or as a nonprofit tool, and may we partner with a regulated bank or non-bank lender to provide credit? - Which drivers are in scope: those who own their vehicle outright, those repaying a vehicle loan, or those who rent the vehicle from an owner by the day? - Does the product need to be commercially sustainable, or is social impact the only goal? - Can we assume drivers have smartphones and accept digital payments from passengers, or must the design also serve cash-only drivers with basic phones? ### What a Strong Answer Covers - A diagnosis of the debt cycle that separates volatile income, lumpy and unexpected expenses, the missing cash buffer and the missing formal credit record, and explains why informal lenders win on speed and access - A justified choice of driver segment with concrete, ranked pain points - Solutions that change the driver's economics, such as cheaper credit repaid in step with earnings, an automatic savings buffer and protection against shocks, prioritized into a first release - A sustainable business model that respects India's lending rules, with safeguards so the product does not become a new debt trap - Success metrics that show whether drivers actually leave informal debt, with guardrails on over-borrowing and collection practices ### Follow-up Questions - How would you judge the creditworthiness of a driver who is paid mostly in cash? - Six months after launch, repayment rates are strong, yet surveys show drivers still borrow from moneylenders. What would you investigate? - Would you launch with savings or with credit, and why?