The popular FinTech platforms serving MSMEs in India
New Delhi, Jan 31 (KNN) Keeping in view the credit crunch faced by the micro, small and medium enterprises (MSME) sector in India due to various reasons, new FinTech platforms are coming up to improve loan disbursal to the sector.
The main reasons behind the sector facing credit crisis are lack of collaterals, no bank accounts, lack of proper documentation etc.
The FinTech companies are gaining popularity amongst the informal sector in the middle of all this.
It helps the sector especially the micro and small in accessing loans and in return the businesses are reaching out to them for hassle-free credit.
According to a media report, there are four popular FinTech platforms that are helping in robust loan disbursal – CreditMantri, Aye Finance, CoinTribe and Faircent.
CreditMantri helps small business connect with NBFCs and banks on its platforms and avail financial assistance. Since the process is digitalized, it makes it faster and easier for the applicants to get loans.
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.
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.
Faircent, a P2P lending platform is gaining popularity amongst the MSMEs to fulfil their needs of short-term loans at lower interest rates.