Platforms enabling easy access to short term loans and finance MSMEs
Fintech platforms in India have seen a drastic transformation in the recent past and are yielding positive results in several critical areas such as MSME Lending. In the last two decades, the growth curve of the Indian economy has been largely controlled by the MSMEs and is contributing a whopping 40% to the country’s GDP. Given the technological advancements, they are able to venture into segments that were previously deemed high-risk by financial institutions and banks. These emerging fintech platforms have been successfully bridging the gap between lenders and borrowers utilizing technology in automating policy checks, verifications, eKYC, amongst other governing protocols.
Also, as announced during the Union Budget, the government has emphasized on supporting the MSME sector by providing employment opportunities that will in return boost the MSME and SMEs leading to increased demand and overall growth of the economy.
In this technologically advanced era, here are 5 fintech players that are disrupting this space by providing flexible benefit plans to these MSMEs
InCred : Founded in the year 2016, Incred endeavors to disrupt the status quo in traditional lending that seems to exclude those most in need of credit, due to outdated, rigid and often inefficient processes. InCred offers small & medium business loans with terms that meets specific needs of a borrower. It provides the financial help that one needs to make the next big move possible and take its small or medium enterprise to new heights. Incred offers a Working Capital Loan upto 12 months to manage the cash flows & collateral free term loans up to 36 months for the growth of ones business. Apart from SME/MSME loans,this platform has an extensive product portfolio which includes Personal Loans (with customizations for weddings, medical reasons, and travel purposes), Education Loans, and Two-Wheeler Loans alongside others. The best part is one won’t be making any branch visits and will get an instant loan sanction.
ePayLater : ePayLater is an online platform that provides working capital finance to SMEs/MSMEs in India with flexible, short-term loans that can be used to purchase inventory, service new orders, or optimise cash cycles. Its mission, it states, lies in bridging the current gap in the market with innovative and flexible credit products for SMEs, delivered in an efficient and customer-friendly manner.
Indifi: Indifi Technologies is a debt-financing platform which facilitates SME lending with a focus on customer-product fit. The key innovation in the approach that Indifi is bringing to the market is to design and deliver credit products basis the kind of business the MSME is in. This industry virtualization brings unique benefits to the customer as product design fits into the business cash flows of the MSME. It claims to design and deliver credit products based on the kind of business the SMB does. The platform helps to create an industry-specific credit delivery system in a cost-effective and scalable manner using innovative technology with an increasing focus on Tier II and Tier III cities as Well. The Company states that it strives to improve access to credit, speed of approval and disbursement, in order to provide relevant collateral-free loans and loan products. Indifi has successfully contributed in bridging the gap in SME financing with the perfect amalgamation of technology and access to data; enabling seamless access to funding with flexible repayment options for start-ups and small businesses
Zip Loan: ZipLoan is a platform that makes Finance accessible to small businesses and strives to ensure easy availability of unsecured Working Capital to small business owners in India believing that availing MSME Loans and SME Loans is the most suited way to increase working capital, buy or upgrade machinery, or to expand the business. ZipLoan offers personal business loan of up to INR 5 lakhs to small business owners that can be repaid over a time period of 12-24 months. They have so far helped many companies from different sectors, such as clothing company, manufacturing company, pharmaceutical company, electronic company, etc., in their growth by providing private business loans. Their technology-enabled platform allows them to offer credit in a fast and hassle-free manner thus solving the fundamental problem of small business owners i.e. getting easy access to finance when they need it.
RupeeRedee: Gurgaon-based RupeeRedee is a new-age digital lending platform that leverages technology and data sciences to make lending safe, quick and hassle-free for India’s massive populace of underserved customers. It follows a 100 per cent paperless process of disbursing loans to customers at an average time period of 10 minutes. Through this, customers can conveniently get access to small-ticket loans ranging from Rs 5,000 to Rs 25,000. RupeeRedee has also introduced RupeeRedee Elite Program for its exclusive customers, where the existing eligible customers get pre-approved plus other benefits under the loyalty program
