Fintech, Digital Lenders Launch Schemes For MSME Credit
Money & Banking
As banks are being prodded by the government to extend liquidity support to micro, small and medium enterprises (MSMEs), a number of digital lenders and non-bank finance companies are jumping aboard to offer fast credit solutions to these firms.
In recent weeks, many such players have announced plans to provide funding to the sector, which needs ready cash solutions to restart operations after the Covid-induced lockdown.
For instance, U GRO Capital, a technology-first, small-business lending platform, plans to roll out an end-to-end digital lending platform for the sector and plans to reach out to five lakh MSME clients.
To be launched on July 1, the Sanjeevani platform will offer unsecured loans between ₹10 lakh and ₹25 lakh for a duration of two to 36 months, and secured loans between ₹50 lakh and ₹2 crore for seven to 10 years. It also plans to offer an in-built, up-front, moratorium up to three months to aid businesses whose working capital cycles have been disrupted either by supply-chain breakages, labour issues or adverse cash flows during the national lockdown.
Similarly, SOLV, a B2B digital platform for MSMEs, has launched a credit card along with Standard Chartered Bank to meet ongoing business expenses, including supplier payments, fuel, logistics, purchase of raw material, utility payments and other working capital outlays.
Instamojo, a full-stack MSME-solutions provider has introduced ‘InstaCash’, which enables merchants to avail loans for an amount up to ₹1 lakh, for a 7-14 day period. The company has reported growth of 25-30 per cent in its merchant base since the start of the lockdown.
A recent report by ICICI Securities had noted that the rollout of a ₹3-trillion crore Emergency Credit Line Guarantee Scheme (ECLGS) has kick-started the flow of funds into the MSME/Mudra segment.
“Banks have disbursed ₹329 billion (of the cumulative sanctions worth ₹754 billion). As anticipated, PSU banks are in the forefront (two-third of disbursements) with SBI taking the lead (one third),” it had noted.
Published on
June 29, 2020
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As banks are being prodded by the government to extend liquidity support to micro, small and medium enterprises (MSMEs), a number of digital lenders and non-bank finance companies are jumping aboard to offer fast credit solutions to these firms.
In recent weeks, many such players have announced plans to provide funding to the sector, which needs ready cash solutions to restart operations after the Covid-induced lockdown.
For instance, U GRO Capital, a technology-first, small-business lending platform, plans to roll out an end-to-end digital lending platform for the sector and plans to reach out to five lakh MSME clients.
To be launched on July 1, the Sanjeevani platform will offer unsecured loans between ₹10 lakh and ₹25 lakh for a duration of two to 36 months, and secured loans between ₹50 lakh and ₹2 crore for seven to 10 years. It also plans to offer an in-built, up-front, moratorium up to three months to aid businesses whose working capital cycles have been disrupted either by supply-chain breakages, labour issues or adverse cash flows during the national lockdown.
Similarly, SOLV, a B2B digital platform for MSMEs, has launched a credit card along with Standard Chartered Bank to meet ongoing business expenses, including supplier payments, fuel, logistics, purchase of raw material, utility payments and other working capital outlays.
Instamojo, a full-stack MSME-solutions provider has introduced ‘InstaCash’, which enables merchants to avail loans for an amount up to ₹1 lakh, for a 7-14 day period. The company has reported growth of 25-30 per cent in its merchant base since the start of the lockdown.
A recent report by ICICI Securities had noted that the rollout of a ₹3-trillion crore Emergency Credit Line Guarantee Scheme (ECLGS) has kick-started the flow of funds into the MSME/Mudra segment.
“Banks have disbursed ₹329 billion (of the cumulative sanctions worth ₹754 billion). As anticipated, PSU banks are in the forefront (two-third of disbursements) with SBI taking the lead (one third),” it had noted.
Published on
A letter from the Editor
Dear Readers,
The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill.
In these difficult times, we, at BusinessLine, are trying our best to ensure the newspaper reaches your hands every day. You can also access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute.
But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.
I appeal to all our readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. You can help us by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section.
Our subscriptions start as low as Rs 199/- per month. A yearly package costs just Rs. 999 – a mere Rs 2.75 per day, less than a third the price of a cup of roadside chai..
A little help from you can make a huge difference to the cause of quality journalism!
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