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How Fintech Evolves With The Changes In RBI Guidelines

For the longest time in India, lending has been viewed as an exclusive territory for banks first, followed then by regulated NBFCs. As digital technology strengthened its foothold in the country, FinTech entered the scene. Despite the presence of such Financial-Technology ventures in the market there were no clear directions from the Centre on the same. However, as of 2022, the RBI has recognized the role and scope of FinTech in the lending ecosystem. When as many as 600 out of 1100 lending apps for Indian Android users were found to be illegal, the country’s leading financial authority was compelled to chalk out a plan of action for these digital lending services. Jitendra Gupta, founder and CEO of the digital banking app Jupiter, believes that the new RBI guidelines will broaden the horizons of FinTech in the digital lending ecosystem- including both B2C and B2Blending - making it a $350 billion market opportunity (approx.) before the end of FY23. Besides operational discipline, it i...
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CATERING TO THE GROWING FINANCIAL NEEDS OF THE UNDERSERVED MSME SECTOR

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  Micro, Small and Medium Enterprises (MSMEs) have specifically suffered throughout the pandemic. A survey by SIDBI revealed that the revenue of more than 50% of the MSMEs declined by 25% and that 67% of the MSMEs were shut for three months in FY21. This sector is a facet for entrepreneurship and employment which is why this decline in their progress negatively impacts the upward trend of India’s economy.  Less than 6-10 Million out of over 60 Million MSMEs are able to get loans from formal credit institutions. Traditional banks prefer giving formal credits loans to those requiring a larger sum, for longer periods and those who have the ability to fulfil all requirements for the same, thus, MSMEs are at the end of the list when it comes to getting access to formal credit. Much like most businesses, MSMEs require loans for their daily working capital needs but they constantly face issues securing the same i.e., failure to satisfy the eligibility criteria required by the formal ...
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3 Dos and Don’ts for First-Time Business Loan Applicants

The start-up economy has found roots in India, and everyone can confirm having at least one small business owner in their acquaintance. As the number of MSMEs are increasing across the country, so is the need for adequate business financing opportunities. Consequently, B2B lending platforms have risen to prominence, giving competition to traditional banks in the area of business finance. New business owners usually have some amount of hesitation while making credit decisions. This article has listed three primary dos and don’ts for those budding entrepreneurs who are applying for a business loan for the first time in their lives. THE DOS Prepare a Budget   You must have a detailed list of business expenses to be made from your loaned amount, with relevant reference to substantiate the numbers on your budget. This way you can prevent making any arbitrary decisions when you eventually have the credit in your hands.   Have a Repayment Plan   No lender will wan...
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Why B2B Financing Is Essential for Improving Small Business Growth

Buy Now Pay Later (BNPL), which was formerly a niche service limited to those with excellent credit histories, has recently become one of the most popular financial solutions. Unlike conventional credit solutions, BNPL gained traction with the introduction of lower ticket sizes and quick approval timelines. The B2B (business to business) BNPL has started expanding with strong financial products for SMEs, even though as of now the majority of BNPL offerings are only available to B2C (business to consumers).   The BNPLB2B model is where the seller receives a one-time payment of the entire price of sale from the buyer’s financier in exchange for the buyer paying the purchase price in installments over a predetermined period. This in turn leads to an increase in the average order value and conversion rates of sale.   SME is always short on time and is busy finding new suppliers or buyers and therefore, can ill afford to spend a lot of time on finding credit providers or curated cr...
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