25th October 2019: With consequent contribution to India’s GDP, the MSME sector is growing at a faster rate. However, funding is the pre-requisite for any SME to set up their business and grow smoothly. The number of restrictions imposed by banks is making it difficult for MSMEs to finance their business. Fintech players are disrupting this space by their advanced technology and providing flexible benefits plan to emerging entrepreneurs. Below are the 5 Fintech Companies who are organizing the lending sector for MSMEs.
FlexiLoans: FlexiLoans is an online lending platform that started with an endeavor to solve the problem that MSMEs face in accessing Quick, Flexible and Adequate funds for growing their Businesses. Their technology-powered online marketplace is the best model to meet the financial requirements of MSMEs who do not have credit history and hence cannot avail business loans from traditional banking channels.
LenDenClub: LenDen Club is one of India’s fastest growing peer-to-peer lending platforms. They aim to provide hassle-free loans to MSMEs by leveraging AI driven tech and in-house assessment team. LenDen Club has reportedly crossed a landmark of more than 1,00,000 lenders and borrowers till date.
NeoGrowth: NeoGrowth isNBFC registered with RBI, SME lending platform. Their approach includes innovative technology and digital payment ecosystem along with flexible repayment options. Their objective is to bridge the credit gap of MSMEs and offer customized products to address their multiple business needs.
Ziploan: Ziploan has been another RBI registered NBFC, is a technology enabling online lending platform to provide Small Business Loans. Ziploan is addressing the need of SME segment which has been ignored by financial institutions. The platform is generating a unique ZipScore for each loan applicant by developing an automated underwriting algorithm.
Shubh Loans: Shubh Loans is Bengaluru based Fintech startup who has recently tied up with 400 MSMEs to strengthen its distribution. The smart credit model deviates from the traditional model (where the individual’s repayment capacity is the sole criteria) and replaces it with the Shubh Loans credit model (which analyzes repayment capacity of and intention-to-pay by the individual)