The MSME sector is considered as the backbone of Indian economy. The government is also planning to raise the contribution of the sector to the country’s GDP to 50 percent from the present 29 percent, and ensure that it creates employment opportunities to at least 15 crore people against the 11.1 crore at present.
Nitin Gadkari, Minister of MSME, said earlier this year,
The MSME portfolio is associated with the most important issue - the country’s growth rate and employment potential. And it is the PM’s expectation that employment should increase from this sector, which is very low at present, and there should be employment creation”.
Riding on the wave of digitisation, the MSME sector has also paced up compared to earlier times. The availability of digital infrastructure is today enabling Indian MSMEs to rapidly increase their business footprint by overcoming challenges and ultimately tap the prevailing business opportunities. However, the biggest challenge in the sector’s growth has been the availability of financial support.
This is an area where a number of lending platforms - by leveraging their cutting-edge tech-driven approaches (including AI and data analytics) and tailor-made financial instruments - have brought about the biggest difference.
From collateral-free working capital loan (for your imminent liabilities) to long-term loans (for business expansion), SMBStory lists some of the lending platforms helping small businesses and MSMEs avail easy credit.
PayNearby is a division of Nearby Technologies, one of India’s leading hyperlocal fintech networks offering digital financial and non-financial services to underbanked segments of the population.
PayNearby empowers retailers by offering digital services such as Aadhaar-based banking services, bank savings, bill payments, card payments, insurance services, and more to local communities.
The company leverages AI, ML, and advanced analytics to create quick, simple, seamless, and efficient micro experiences that enable local retailers, referred to as ‘Digital Pradhans’, to provide these assisted hyperlocal services
Aye Finance is a commercial institution built with the mission to solve the funding challenges of MSMEs, and enabling their inclusion into the mainstream economy.
Aye Finance differentiates itself by creating a technically-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.
Satya MicroCapital Limited is an NBFC-MFI serving low-income entrepreneurs in rural and urban areas. The firm provides prompt, convenient, and affordable collateral-free credit to unbanked and underserved people through a strong credit assessment and centralised approval system.
The organisation’s firm belief in modern technology and its potential to increase efficiency, reduce risks, and enhance overall customer experience is apparent in its adoption of cutting-edge innovations to power its operations.
Happy Loans provides customised loan offerings to micro-enterprise owners to meet their specific demands. It assesses over 1,000 variables about the merchant 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 a partner, he is likely to get a big credit line from Happy Loans. It offers micro business loans that start at as low as Rs 2,000 for the duration as short as 30 days.
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.
(Edited by Megha Reddy)