Anil, there have always been borrowers and lenders. As rates rise, the cost of money from traditional sources will go up, too. This medium exists for borrowers as a place below bank unsecured loan rates (when the banks will provide them) and above where investors are able to find returns other than equity shares. As the bar moves, LC rates will have to move with them to stay competitive on both sides. When I bought my first home, we paid 11.5% for the mortgage. No one would think of paying that now, but in 1989, that was the going rate. There will always be someone able to pay it, and someone willing to lend it. Sorry, not buying that argument.
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