Credit and Finance for MSMEs: The digital lending market size in India was around $75 billion in FY18 and is likely to grow to $350 billion by FY23 out of which around $100 billion is expected to be lent to MSMEs.
Credit and Finance for MSMEs: Tiger Global and Y Combinator-backed payment gateway startup Razorpay has added a new product to their digital lending solutions for MSMEs as it looks to further tap into the credit needs of small businesses looking to recover from the Covid and overall economic gloom. Six-year-old Razorpay, a full-stack financial services company which served companies including Zoho, Facebook, Intuit, Airtel etc., has launched ‘Cash Advance’ – an unsecured line of credit for MSMEs to manage cash requirements prior to their customer payments. Currently, there are more than a dozen startups offering credit to MSMEs including Capital Float, Aye Finance, Indifi Technologies, Lendingkart, FlexiLoans etc in India.
Borrowers would be able to access collateral-free credit facility “within a few hours or instantly” with a limit of Rs 50,000 to Rs 10 lakh based on their credit history and payments history. Razorpay already offers working capital loans through its partner NBFCs and banks along with corporate cards for businesses to manage expenses. The digital lending market size in India, as per Statista, was around $75 billion in FY18 and is likely to grow to $350 billion by FY23 out of which around $100 billion is expected to be lent to MSMEs.
Source: Financial Express
