Platforms enabling easy access to short term installment loans and finance MSMEs

Fintech platforms in India have observed a drastic transformation recently and are yielding excellent results in several critical areas such as for example MSME Lending. Within the last 2 decades, the growth curve of the Indian economy has been largely managed by the MSMEs and is contributing an impressive 40% to the country’s GDP. Given the technological advancements, they are able to venture into segments which were previously deemed high-risk by finance 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, between other governing protocols.

Also, as announced during the Union Budget, the federal government has emphasized on supporting the MSME sector by giving employment opportunities that will in return raise the MSME and SMEs leading to increased demand and overall growth of the economy.

In this technologically advanced era, listed below are 5 fintech players that are disrupting this space by giving flexible benefit plans to these MSMEs

InCred : Founded in the entire year 2016, Incred endeavors to disrupt the status quo in traditional lending that seems to exclude those most looking for credit, because of outdated, rigid and often inefficient processes. InCred offers small & medium 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 control the money flows & collateral free term loans up to 36 months for the growth of kinds business. Aside from SME/MSME loans,this platform comes with an extensive product portfolio which include UNSECURED LOANS (with customizations for weddings, medical reasons, and travel purposes), Education Loans, and Two-Wheeler Loans alongside others. The very best part is one won’t be making any branch visits and can get an instant loan sanction.

ePayLater : ePayLater can be an online platform that provides working capital finance to SMEs/MSMEs in India with flexible, short-term loans that can be utilised to acquire inventory, service new orders, or optimise cash cycles. Its mission, it states, lies in bridging the current gap on the market with progressive and flexible credit products for SMEs, delivered within an efficient and customer-friendly manner.

Indifi: Indifi Technologies is a debt-financing platform which facilitates SME lending with a give attention to customer-product fit. The main element innovation in the approach that Indifi is bringing to the market is to create and deliver credit products basis the sort 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 create and deliver credit products based on the kind of business the SMB does. The platform really helps to create an industry-specific credit delivery system in a cost-effective and scalable manner using impressive technology with a growing give attention to Tier II and Tier III cities aswell. THE BUSINESS states that it strives to improve usage of 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 an ideal amalgamation of technology and usage of data; enabling seamless usage of funding with flexible repayment options for start-ups and smaller businesses

Zip Loan: ZipLoan is a platform which makes Finance accessible to smaller businesses and strives to make sure easy availability of unsecured Working Capital to small enterprises in India believing that availing MSME Loans and SME Loans is the most suited way to improve working capital, buy or upgrade machinery, or to expand the business enterprise. ZipLoan offers personal business loan as high as INR 5 lakhs to small business owners that can be repaid over a period period of 12-24 months. They have up to now helped many companies from different sectors, such as clothing company, manufacturing company, pharmaceutical company, electronic company, etc., in their growth by giving private loans. Their technology-enabled platform allows them to provide credit in a fast and hassle-free manner thus solving the essential 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 procedure for disbursing loans to customers at the average time period of 10 minutes. Through this, customers can conveniently access small-ticket loans ranging from Rs 5,000 to Rs 25,000. RupeeRedee has also introduced RupeeRedee Elite Program because of its exclusive customers, where the existing eligible customers get pre-approved plus other benefits under the loyalty program.