4 Lending platforms making loans more accessible for Indian SMEs

By Gloria Methri

Financial technology has disrupted traditional lending and made loans more accessible to the underserved and underbanked segments. Financial inclusion can help SMEs by providing funding through innovative lending models and online platforms.

The rise of FinTech lenders has proved to be a blessing for SMEs, as the loan application process takes place digitally, with minimal or no paperwork required.

Compared to traditional financing methods, digital lending’s allure lies in its convenience and streamlined processes, making it a preferred choice for businesses seeking hassle-free access to capital. Moreover, cash flow-based loans and tokenized loans contribute to financial inclusion by reaching underserved SMEs.

In the last financial year alone, digital lenders disbursed over INR 50,000 crores to SMEs, marking a 30% increase from the previous year. Projections indicate that digital lending will surpass traditional methods for unsecured loans by 2030.

Below are 4 FinTech platforms streamlining the lending process for SMEs in India

• Capri Loans

Capri Loans is a Non-Banking Financial Company (NBFC) that offers digital loans to small business owners for various purposes: Expansion and diversification, Working capital, Purchasing fixed assets, and other business or personal needs.

The loans can be used by retail outlet owners, provision store owners, handicraft manufacturers, and individuals who provide services like transportation, healthcare, and education. They can also be used to purchase machinery, equipment, and vehicles. Capri Loans offers loans ranging from Rs 5 lakh to Rs 50 lakh with repayment terms of up to 15 years.

• FlexiLoans

FlexiLoans is an online lending platform that offers unsecured business loans to micro, small, and medium enterprises (MSME) units. These loans can help with working capital needs, purchasing machinery and equipment, and more. It offers a fast and simple online application process for MSME loans, with loan approval in as little as 24 hours. Loan amounts range from Rs. 1 lakh to Rs. 10 lakhs, with repayment terms of up to 12 months. Interest rates start at 18% per annum. There are no prepayment or hidden charges.

• InCred Financial Services

InCred Financial Services offers a variety of financial products to SMEs: working capital financing, Growth capital, Digital MSME loans, Supply chain financing, and Escrow-backed lending. It provides short-term working capital and term loans to small and medium enterprises, with loan sizes ranging from Rs 1 lakh to Rs 10 crore.

InCred uses technology and data science to make lending quick and easy. It may consider alternate data sources for credit assessment. It offers tailor-made financing solutions and has partnered with industry leaders like Amazon to provide credit quickly.

• KreditBee

KreditBee is an online credit solutions provider in India that offers business loans to micro, small, and medium enterprises (SMEs). Its business loans include unsecured loans, secured loans, larger loans and working capital loans. Known for its 10-minute approval, KreditBee’s goal is to provide quick, convenient, and hassle-free loans to individuals and businesses. Eligibility parameters for small business loans vary by lender, but common ones include income, age, location, employment status, marital status, and credit score.