New Delhi [India], Jan 28 (ANI): The lending sector in India has seen a drastic transformation in the recent past, given the technological advancements that have been witnessed in a decade.
The Indian formal banking system is more than 200 years old but is unable to reach out many individuals and businesses. Lack of collaterals, credit history loss, and no bank account are few of the major reasons. There is a huge marginalised segment which is untouched even by basic financial services. This is where FinTech platforms play a key role.
In case of the Micro, Small and Medium Enterprise (MSME) segment, lack of documentation leads to loan applications getting rejected. In rural India, a major segment is still unbanked and rejection rates are also higher. Due to this, these small business owners suffer and their livelihood gets hampered.
In the midst of this, here are four FinTech platforms that are helping in robust loan disbursal:
CreditMantri helps small business connect with NBFCs and banks on its platforms and avail financial assistance. The easy and hassle-free digital procedure makes it easy for a business to avail a loan in lesser time.
Aye Finance, along with its commercial operations, also funds its non-profit initiative to coach MSMEs on market knowledge, business book-keeping and advising on operations techniques. These, in turn, help sustain employment at the bottom of the pyramid. Aye Finance has already impacted an ecosystem of over 40,000 MSMEs through its business enterprise loans.
CoinTribe is confident about the adoption of digital in the SME segment especially as younger generations enter the domain. With increasing digital adoption in the country and expansion of the MSME sector, CoinTribe aims to facilitate USD 5 billion of loans through its platform over a period of 5 years and is rapidly scaling up its marketplace operations.
With growing awareness around P2P, MSMEs have started opting for the P2P Lending platform to fulfil their requirements for short-term loans that come with lower interest rates. Faircent's P2P model serving business loan requirements is an example of how far lending industry has come to serve MSMEs. The difference between long bank lines and now loan on a click is significant. The platform has over two lakh registered borrowers and 18,000 registered lenders.(ANI)