FinTech Platforms Streamlining Lending Process for SMEs in India
Financial technology has revolutionized the lending landscape, particularly benefiting small and medium enterprises (SMEs) in India. With the rise of FinTech lenders, SMEs now have easier access to funding through innovative digital platforms, making the loan application process more convenient and efficient.
In the last financial year, digital lenders disbursed over INR 50,000 crores to SMEs, marking a significant 30% increase from the previous year. This growth is indicative of the shifting preference towards digital lending over traditional financing methods for unsecured loans, with projections suggesting that digital lending will surpass traditional methods by 2030.
Four FinTech platforms are leading the charge in streamlining the lending process for SMEs in India:
1. Capri Loans: This Non-Banking Financial Company (NBFC) offers digital loans ranging from Rs 5 lakh to Rs 50 lakh with repayment terms of up to 15 years. The loans cater to various purposes such as expansion, working capital, purchasing fixed assets, and other business or personal needs, benefiting small business owners across different sectors.
2. FlexiLoans: An online lending platform providing unsecured business loans to micro, small, and medium enterprises (MSMEs) with loan amounts ranging from Rs. 1 lakh to Rs. 10 lakhs. The platform offers a fast and simple online application process with loan approval in as little as 24 hours, making it a convenient option for businesses in need of quick financing.
3. InCred Financial Services: This platform offers a range of financial products to SMEs, including working capital financing, growth capital, digital MSME loans, supply chain financing, and escrow-backed lending. With loan sizes ranging from Rs 1 lakh to Rs 10 crore, InCred leverages technology and data science to provide tailor-made financing solutions to small and medium enterprises.
4. KreditBee: Known for its 10-minute approval process, KreditBee offers business loans to micro, small, and medium enterprises (SMEs) in India. The platform provides various types of business loans, including unsecured loans, secured loans, larger loans, and working capital loans, aiming to provide quick, convenient, and hassle-free financing solutions to businesses.
Overall, the growth of digital lending in India is empowering SMEs by providing them with easier access to capital through streamlined processes and innovative lending models. As FinTech continues to disrupt the traditional lending landscape, SMEs stand to benefit from increased financial inclusion and access to funding opportunities.