Top 5 FinTech Lending Companies for MSMEs in India

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    Blog posted on : 14-04-2021

    Top 5 FinTech Lending Companies for MSMEs in India

    The advent of fintech companies have totally changed the way, the financial industry was working. Few years before no one could have thought that all the finance-related decisions of the MSMEs would be on their fingertip. These fintech companies have brought inconvenience, time-saving, and ease of doing banking for the MSME, which at one point in time was non -existent. It has been a welcome change for the MSME who are busy in their lives with their professional commitments.

    The interesting business models adopted by Indian fintech companies are:

    1. Digital banking solutions simplifying banking and providing convenience to the users
    2. Peer -to-Peer Lending systems for reliable credit
    3. Alternative credit scoring technology to determine the creditworthiness of the borrowers by providing business loan at the low credit score.

    In this article, we would get to know about the top five fintech lending companies which have brought freshness into the financial diaspora.

    Ziploan

    Founded in the year 2015, ZipLoan provides unsecured or collateral-free business loan up to 7.5 lakh to the MSME. Driven by technology, Ziploan addresses the biggest pain point of the MSMEs of getting the business loan quickly when the need arises by customizing the loan sourcing and underwriting process of its target customer base.

    The main USP of ZipLoan is its credit evaluation process called ‘Zipscore’ that helps to underwrite each MSME segment separately. Removing human bias, ZipScore captures data from the qualified database only and offers real-time credit decision. The parameters that ZipScore considers are banking transaction, financial data, demographic data, mobile data, business web footprints, identity validation, credit history

    NeoGrowth

    Headquartered in Mumbai, NeoGrowth is an unsecured business loan provider to MSMEs. NeoGrowth offers business loans to SMEs and funds small and medium-sized retailers and online vendors in the country. It has over 6000 registered lenders and 30,000 borrowers.

    It has pioneered the revolution of digital lending in India, financially empowering the SMEs who were struggling with the hurdles like easy and timely finance. The company focus has always been on innovations, accountability, and customer-centricity.

    Faircent

    Founded in the year 2013, the company pride itself on being the country's first RBI registered NBFC. It is the leading peer to peer lending platform for business and retail loans. They have provided a platform for both individuals and the MSME, where they can be connected to the various financial institutions that are willing to lend. The benefits for the MSMEs are a quick process of getting the loan and at an affordable rate.

    Capital Float

    Founded in the year 2013, Capital Float is a digital lending platform for small and medium businesses. The company has launched many innovative financial products for both MSMEs and individuals including MSME loan and other types of loans. One of its product Walnut is getting popular among the masses, helping them to manage their expenses. The company takes pride in providing quick and hassle-free business loan with the help of technology through the website, App, and various offline and online mediums

    LendingKart

    Headquartered in Gujarat and founded in 2014, Lending Kart provides all types of business loans to small and medium businesses. The USP of Lendingkart is the use of big data analytics which supports it to derive the creditworthiness of the borrowers and accordingly provide them business loans. Lendingkart is adept in providing customized financial products catering to the need of different profile of customers

    Post covid the future of the Fintech start-ups will be bright due to the following reasons:

    The banking facilities will be provided online and the MSMEs do not have to visit banks or other financial institutions to ensure their work is done. This will provide confidence and security to the sector as the bank personnel can be approached virtually through video conferencing tools.

    1. Customization in the process will be done for the senior citizens, who are vulnerable to COVID and they can operate from the comfort of their homes.
    2. Finance applications are being created that has a user-friendly interface and higher engagement via push notifications, chatbots, etc with a touch of strong security
    3. Fintech has started handling customer data carefully by providing security against ransomware and other associated frauds