These 10 platforms are helping small and medium businesses get easy finance with minimum documentation
The MSME sector is growing at a faster rate, with its consequent contribution to India’s GDP.According to the Confederation of Indian Industry (CII), MSMEs contribute 6.11 percent to the manufacturing GDP, 24.63 percent to the GDP from service activities, and 33.4 percent to India's manufacturing output. Despite its huge contribution, the sector is considered laid back.
The MSMEs in India often face a cash flow disturbance due to various factors like non-availability of funds, post-dated cheques, late payments, and many more. The sector has immense potential for growth, however, funding is the pre-requisite for any MSME to grow smoothly and the number of restrictions imposed by the banks is making it difficult for the sector to finance their business.
In this technologically-advanced era, fintech players are disrupting this space with their advanced technology and by providing flexible benefits plan to the emerging entrepreneurs.
Here are 10 platforms enabling easy access to finance for the MSMEs.
MoneyTap: MoneyTap is one of India's first app-based consumer credit line, wherethe bank issues loans up to Rs 5 lakh to the customers , without asking for any collateral or charging any interest. Using the MoneyTap app, consumers can borrow as little as Rs 3,000 or, as much as Rs 5 lakh, and repay it as EMIs over a period of two months to three years.
The app securely connects with the banking systems to give the customers not only an instant approval but also a credit limit, depending on individual credit history with real-time data from CIBIL. The technology enables MoneyTap to provide instant decision and access to money - 24/7, irrespective of holidays.
FlexiLoans: FlexiLoans is an online lending platform which started with an endeavour to solve the problem that MSMEs face in accessing quick, flexible, and adequate funds for growing their businesses. The platform’s technology-powered online marketplace is the best model to meet the financial requirements of MSMEs, who do not have a credit history and hence, cannot avail business loans from traditional banking channels.
LenDenClub: LenDenClub is one of India’s fastest-growing peer-to-peer (P2P) lending platforms, which aims to provide hassle-free loans to MSMEs, by leveraging AI-driven tech and in-house assessment team. LenDenClub has reportedly crossed more than one lakh lenders and borrowers till date.
NeoGrowth: NeoGrowth is an SME lending platform, registered with the Reserve Bank of India (RBI). The NBFC’s approach includes innovative technology and digital payment ecosystem, along with flexible repayment options. NeoGrowth’s objective is to bridge the credit gap of MSMEs and offer customised products to address the customers multiple business needs.
Recently, NeoGrowth received an ISO 9001:2015 certification from The International Organisation for Standardisation (ISO). The company is among the first few players in the SME lending space to receive this certification for quality assurance in its processes.
Vivriti Capital: Vivriti Capital is a tech-enabled online marketplace offering customised debt products to institutional clients within retail financial services and other non-financial services sectors. Headquartered in Chennai, Vivriti Capital was established with the objective of connecting capital market investors with institutions, small enterprises, and individuals to provide them with a comprehensive range of financial services in an efficient manner.
Ziploan: Ziploan, a tech-enabled, RBI registered NBFC, helps in providing loans to small businesses. The platform addresses the need of the SME sector, which has been ignored by financial institutions. The platform generates a unique ZipScore for each loan applicant by developing an automated underwriting algorithm.
Shubh Loans: Shubh Loans is a Bengaluru-based fintech startup who recently tied up with 400 MSMEs to strengthen its distribution. The smart credit model deviates from the traditional model (where the individual's repayment capacity is the sole criteria) and replaces it with the Shubh Loans credit model (which analyses repayment capacity of and intention-to-pay by the individual).
Lendbox: Lendbox is an RBI licensed NBFC peer-to-peer lending platform which offers a conducive environment for borrowers and investors. Unlike banks and financial institutions, Lendbox cuts down the interest rates for borrowers and increases investor's yields by eliminating mediators like commercial banks, depository institutions, etc. Lendbox aims to revolutionise the personal loans market in India by creating a one-stop-shop for all borrowers with varied profiles and needs, who can have access to both retail and institutional investors with varying risk appetites.
CoinTribe: CoinTribe is one of the leading online loan disbursement platforms that provides quick and easy collateral-free loans to small businesses and individuals. It is the only online lending platform which has back-tested its credit model with large banks.
The marketplace model facilitates loan origination and credit assessment through CoinTribe before it is shared with the banks. Platform as a service (PaaS) enables banks and NBFCs to utilise CoinTribe’s platform for effective risk analysis and recommendations to digitally underwrite their own consumers. CoinTribe’s PaaS is providing the lenders across the country to become digital-ready and enhance the efficiency of their lending process.
Happy Loans: Happy assess over 1,000 variables about the merchants to underwrite their micro-business. Its credit model is based on the merchant's level of business engagement with the partner, his behaviour towards borrowing, APIs, demographics, and business trends. If the merchant is doing healthy business with the partner, he/she is likely to get a big credit line from Happy Loans.
Promising a unique borrowing experience to Indians, Happy Loans provides customised loan offerings to the micro-enterprises’ owners to meet their specific demands. It even offers micro business loans that start as low as Rs 2,000 for the duration as minimum as 30 days.
(Edited by Suman Singh)