It is a well- known fact that MSME sector was suffering from dearth of finance, however, current year has given a much needed boost to the MSMEs in India.
The ultimate aim of financial inclusion required immediate push to be accomplished.
So, here are some startups who have identified the gaps and created channels of smooth finance resource for micro entrepreneurs:
Promising a unique borrowing experience to Indians, Happy Loans provides customized loan offerings to consumers to meet their specific demands. It even offers micro business loans that start at as low as Rs. 2,000 for durations as short as 30 days. Recently the platform announced to have disbursed more than 18,000+ MSME-based merchants loans.
Aye has designed an innovative "Cluster Based Credit Assessment" methodology that uses insights of each industry cluster to underwrite the risk of lending to micro businesses.
This segment has historically been ignored by banks and formal lending institutions as these businesses maintain asymmetrical books of accounts and seldom have prior borrowing histories, making their credit assessment through the traditional methods a challenge.