Embifi Global Services Pvt Ltd

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

  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 banks, no