Bajaj Finance Spokesperson | 23 Sep, 2019
There's no questioning the fact that SMEs are integral
to the fabric of the Indian economy. With over 50 million SMEs employing
roughly 10 crore professionals, SMEs have been and continue to be the segment
that's leading from the front. Despite SMEs branching out to metros, semi-urban
and rural pockets of India, there’s scope for advancement within the sector.
Currently, a lack of finance is the primary hurdle, one that has interfered
with infrastructure expansion, automation, digitisation, innovation and skill
development.
NBFCs have recognised
this gap and become more than willing to disburse small-ticket loans. As per
data by the RBI pertaining to 2018, NBFC loans and advances amounted to a
whopping Rs.19,842 billion. Moreover, as per a 2017 report by MAPE Advisory
Group, 5% of SME lending requirements that aren’t fulfilled will equate to an
opportunity of $15 billion by 2020.
By evolving the
underwriting process that’s at the core of loan disbursal, NBFCs like have made
it easier still for SMEs to access the finance they need to power their
performance.
Redefining underwriting for
SME loans
Lending to SMEs has always been approached with a certain degree
of caution owing to defaults with loan recovery and non-performing assets. To
allow MSMEs to continue borrowing finance while curtailing risk, NBFCs have
moved on to a more evolved underwriting process.
With
artificial intelligence (AI), machine learning (ML), and data analysis forming
the basis of credit assessment, NBFCs are being able to offer loans that keep
the asset-liability cycle in check.
Understanding the all-new
underwriting process
Lack of a formal credit history has always been a deterrent for
SMEs, but today they can side-step this problem as NBFCs have created their own
credit assessment processes instead. Using information from a number of sources
in combination with AI and ML, NBFCs are able to make a fair risk assessment to
issue finance.
In
recent years, savvy NBFCs with an nuanced understanding of fintech have made
use of information gathered via bank statements, GST returns, point of sales
data, card sales, PAN/TIN information, as well as websites such as Facebook,
LinkedIn and platforms such as Truecaller and Just Dial to understand SME
applicants. By relying on an intelligent algorithm that trawls data from
thousands of touch points, NBFCs are not only able to make a smart assessment,
but are also able to offer financing instantly.
Bajaj Finserv's SME Loan
leads the way
Bajaj
Finserv's Loan for SMEs is the perfect example of
how an NBFC is using the wealth of information available to offer financing in
a fraction of the time that a traditional loan would take. By giving SMEs up to
Rs.30 lakh on a collateral-free basis, it allows enterprises to address big and
small needs that are key to unlocking a new phase of growth. From buying
inventory to scaling machinery and infrastructure, approval for Bajaj Finserv’s
SME financing is available within 24 hours.
What
helps seal the deal is the NBFC’s attention to the little details. By extending
a tenor of 12 to 60 months, for instance, it not only offers quick financing,
but also makes repayment convenient. In a similar vein, via its unique Flexi
Loan facility, Bajaj Finserv disburses funds from the total sanction in parts,
as and when you require financing. Moreover, it levies interest only on the
amount used and not the entire sanction, while also allowing you to pay
interest-only EMIs through the tenor. By helping borrowers pay as per their usage,
Bajaj Finserv simplifies cashflow management as well.
The
cherry on the proverbial cake is Bajaj Finserv's pre-approved offer that you, an SME applicant, can access. By entering 2
details in under a minute, you can find customised financing solutions that
address your firm's needs effortlessly. This facility is just another way in which a fresh approach to
underwriting has improved access to finance for SMEs across the organised and
unorganised sector within the country.
