4 online lending platforms helping smooth finance for SMEs
Though MSMEs play a vital role in the Indian economy, it still has a lot of scope for improvement. The MSMEs require free flow of finance to efficiently run their business. Here are four online lending platforms helping smooth finance for SMEs.Palak Agarwal
The ‘Make in India’ initiative by the government has been responsible for mushrooming the MSME sector which was once a stagnant sector of the Indian economy. The Micro, Small, and Medium Enterprises (MSMEs) have now become the engine of the Indian economic growth.
Though MSMEs today play a vital role in the Indian economy, it still has a lot of scope for improvement. Technology and working capital play a major part. Besides the adoption of technology, the SMEs in India require free flow of finance to efficiently run their business. Though the government has taken various steps to boost credit lending for the small and medium businesses in India, these enterprises still have a lot of challenges to access credit.
Fintech is rapidly gaining progress with borrowers as a more accessible option compared to traditional payment and banking systems offered by financial firms. As new fintech tools and programming develop to disrupt the established model, financial services are improving, offering upgraded proficiency, speed, and responsibility.
Already, a ton of credit application used to get rejected both in the consumer loan application and business loan applications. Critical reason being no credit history, bad credit history, absence of documentation, and more. In this circumstance, fintech ventured in with new strategies to examine chance in the cases. Better technology and creditworthiness of application pushed the cases from the red to green region.
Below are the four online lending platforms helping smooth finance for SMEs.
Aye Finance is one such commercial institution built around the mission to solve the challenges of funding MSMEs and enabling their inclusion into the mainstream economy. Aye Finance creates a technology-enabled process that builds credit insights through a variety of available business and behavioural data. This effective credit appraisal coupled with the use of modern workflow automation and a small but engaged workforce is helping bridge the gap between the MSMEs and organised lending.
MoneyTap is one of India's first app-based consumer credit line. Credit line means that the bank will issue a limit of up to Rs. 5 lakh, without any collateral or charging any interest. Against this limit, 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 from two months to three years. The app securely connects with the banking systems to give them 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 instant access to money - 24*7, irrespective of holidays.
CoinTribe is one of the leading online loan disbursement platform 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. 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 equipping lenders across the country to become digital ready and enhance the efficiency of their lending process.
Happy assess over 1000 variables about the merchant to underwrite his/her 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 at as low as Rs. 2,000 for duration as short as 30 days.