Fintechs help in empowerment of MSME’s availing loan

FOUR FINTECH HELP IN EMPOWERMENT OF MSME’s TO AVAIL EASY LOAN

INTRODUCTION:

MSME is the abbreviation used for Micro, small and medium enterprises. MSM Enterprises or small-scale industries (SSIs) are like a backbone of the economy of the developing country like India. The growth of these industries directly impacts the growth of the Indian economy in a positive way. Whether the company deals in manufacturing or services, it can obtain MSME registration. Although it is not mandatory to apply for MSME registration but getting a business registered under MSME provides numerous benefits like credit facilities, loans, taxation, setting up the business etc.

Micro, Small and Medium Enterprises (MSME) sector was established to facilitate, develop and promote the competitiveness of the micro, small and medium enterprises and it has emerged as a dynamic sector of the Indian economy over the last sixty years.

What are the Benefits of MSME’s?

The cost of setting up an industry and getting a patent registered has become way too cheaper as there are many concessions and rebates available.
The interest on bank loans is very low, somewhere 1 to 1.5 % which is much lower than normal routine loans.
Collateral free loans from banks
Beneficial reservation policies in the manufacturing/production sector
Concession in electricity bills
Direct tax laws rules exemption
Waiver of stamp duty and registration fees
The credit for Minimum Alternate Tax(MAT) can be carried forward for up to 15 years instead of 10 years.
One can easily acquire government tenders as the MSME portal is linked with various other govt. portals which makes it easy to get the marketplace.
There is a one-time settlement fee for non-paid amounts of MSME.

Indian Government has launched many schemes to enhance the sector to receive for capital to scale their business. Following are the schemes:

a. Prime Minister Employment Generation Programme (PMEGP).

b. Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE).

c. Digital MSMEs and so on..

In this article, you will get to know the which all the Indian Startups helping SME’s avail easy loans to scale their business amidst the pandemic.

I. Namaste Credit:

Namaste Credit was founded in the year 2014 by Krishnan Parameshwaran, Gaurav Anand, and Lucas Bianchi. Namaste Credit is an online lending platform that combines a loan marketplace with AI-based credit underwriting engine to help banks and NBFC’s lend to SME’s, democratising credit access for small business.

II. Cash Suvidha:

Cash Suvidha was founded in the year 2016 by Geeta Goswami, Anoop Garg, and Rajesh Gupta, the startup functions under the trade name of Usha Financial Services. It provides loans with a ticket size between Rs 15,000 and Rs 50,000 for MSMEs, and Rs 50,000 and Rs 5 lakh for SMEs.

III. Actyv.ai:

Actyv.ai was founded in the year 2019 by Raghunath Subramanian, Raghu Venkat, and Ramkumar Thirumurthi. Actyv.ai is a bengaluru based SaaS (Software-as-a-service) enterprise platform. Acty.ai offers a BNPL that is Buy Now Pay Later feature to MSME for Business to Business (B2B) transactions.

IV. CREDIT FAIR:

Credit Fair was founded in the year 2018 by Aditya Damani. Credit Fair offers lending solutions to both business and private individuals at zero percent for low cost unsecured loans.

It facilitates niche segments , including home furniture, electric vehicles, education and elective healthcare treatment.