According to a report by Transunion CIBIL and Small Industries Development Bank of India (Sidbi), aggregate MSME and SME lending, for both entities and individuals, has grown at 19.3% in the last few years. With the current banking ecosystem suffering from a lack of capital and struggling with NPA issues, the NBFC sector has been holding fort and growing strongly in the last 2-3 years.
MSME and SME loans are an efficient means of providing financial support to smaller business. These loans may be required by businesses spread over diverse fields, starting from a production based company or a dental clinic that needs latest dental equipment to state-of-the-art gymnasiums for upgrading to the most advanced machinery. Such loans also prove beneficial for businesses to purchase more inventories especially during high demand festival seasons.
The contribution of NBFCs is key to India’s growth; they play a critical role in the core development of infrastructure, transport, and employment generation thereby contributing to wealth creation opportunities and financial support for economically weaker sections. There are a lot of budding fintech platforms have been thriving in bridging the gap between lenders and borrowers, utilizing technology by integrating eKYC, automating policy checks, verifications among other governing protocols.
Here are five distinctive platforms provide smooth finance resource for MSMEs and SMEs:-
1. NeoGrowth: NeoGrowth is a pioneer in lending based on the underwriting of digital payments data. The Company’s proprietary technology platform offers unsecured loans to merchants who accept card or other digital payments from customers. Flexible repayment is a hallmark of the NeoGrowth business, offering customer’s small daily auto-repayment facility from card-based sales. Their mission is to have a positive social impact on the financial lives of small and medium business merchants across India, more than 50% of whom are creditworthy but until now have been excluded from accessing loans based on traditional underwriting methods.
2. RupeeCircle: RupeeCircle is a New Age Peer-to-Peer Lending Platform that gives a business loan to small business owners and enterprises at attractive interest rates so that they can focus on growing their businesses and less about finances. They provide low interest business loans and collateral-free approach to enable you to start working towards entrepreneurial goals instantly.
3. ZipLoan: ZipLoan offers SME loans of an amount ranging from INR 1-5 lakhs at the best interest rates in the market. Their business loans for SMEs are designed to meet the needs of small business owners in the best possible way and require minimal documentation to sanction SME finance and disburse the SME loan funding within a few working days.
4. MyLoanCare: Powered by technology, MyLoanCare.in is an online marketplace for providing financial services and products at competitive rates across demographics in India. The digital platform connects borrowers with suitable lenders to ensure that they get the right loan, by matching their needs and credit profiles. Borrowers range from entry-level workers and small businesses to high net-worth individuals and SME businesses.
5. epayLater : ePayLater is an online platform that provides working capital finance to SMEs in India with flexible, short-term loans that can be used to purchase inventory, service new orders or optimize cash cycles. Their mission lies in bridging the current gap in the market with innovative and flexible credit products for SMEs, delivered in an efficient and customer-friendly manner.