KPR's Blog


Posted in Uncategorized by K P Ramachandran on November 10, 2018


I recollect a Panchathantra story I read years back.

A merchant who was doing lending business in his town wanted to go for pilgrimage . He asked his son to manage the business in his absence. He asked his son to see the past records for necessary guidance. But, the young son was a conceited person who thought he knew better than his father. He thought he would use his wisdom to do better business to prove his mettle. In the first week of his business a small vendor came to him for a loan for his small business. As he was a pavement vendor and was not having any security to offer other than his personal assurance the young merchant refused to loan him. The vendor told him that his dad used to give him money as and when required. He also added that he was prompt in repayment. But the young Banker was not convinced and returned the vendor disappointed. This happened with other small traders as well. The young merchant approached big clients like jewellers, textile showrooms etc offering loans. One diamond merchant opposite to his shop asked for a large amount. The Banker was happy to lend him money even without any security as he was having a large shop. After few years the old merchant came back and took over the business. On verification of the accounts he found that large amount was receivable and repayments were in defaults. He has also noticed that the son has advanced to unreliable people. After assessing the position as a whole the old merchant called his son and told that he did not heed to his advice and financed to bad clients. He told that the small  vendor used to repay the loan promptly . The jewellery merchant was not reliable and was a defaulter in the market. He added that a trader used to become creditworthy  by paying promptly to his creditors. He told that the small vendor who was refused loan was always prompt and was having an attitude to repay his debts on time and was dependable.

The young person learned from his mistake.

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