Mission Micro Enterprises: Equipping Tier II & Tier III cities with modern approaches Technology

The Indian market was destined to change with the unprecedented smartphone adoption that the nation experienced recently. Why wouldn’t it? These smart little devices empower every person with round-the-clock internet connectivity after all. Thereby, also driving them closer to digital services. To give you a picture, the digital payments in India are expected to increase to USD132.2 billion by 2023, or more than double its market value of USD63.8 in 2019. Digital, surely, is the future! But how can businesses – especially the ones in tier II and tier III markets – make the most out of it? Also Read – Apple iPad lineup, Prices and Release Date in India Advertisement Well, their job is being made easy through an array of tech-driven tools and applications. Let’s have a look at some of the ultramodern approaches that are changing this market for good: Shopmatic, making digital transition automatic The party is about to begin but decorations are far from complete. You now know that you can’t go out to buy the cake. So, you pull out your smartphone and say “Bakeries near me” to the Google Assistant (or Siri, whichever you prefer). Then, you pick a cake online and call the shop to deliver the order on priority. Also Read – Unlocking Tomorrow’s Potential: Expert Insights from Technology Leaders on National Technology Day 2024 Situations such as these aren’t limited to parties or bakeries, they prop up on a variety of occasions. It ultimately benefits local businesses to grab profits by merely having a digital presence. Here a platform like Shopmatic can help them with their digital transition. It provides an integrated e-commerce solution to its customers with cool graphics, interactive chat tools, social-media-based selling, and secured checkouts. There is a reason why more than 260,000 successful businesses trust the platform! Also Read – Zeta launches Digital Credit as a service product HAPPY, making credit more accessible Credit is an indispensable element behind the growth of any business. However, relatively smaller businesses, and especially microenterprises, stay aloof from formal channels of funding. This is large because they cannot be assessed for their creditworthiness via conventional means. So, the AI-driven lender, HAPPY, solves the problem using unconventional ones. It uses data analytics alongside Artificial Intelligence to assess a microenterprise using its remittance data. The platform grants loans to its customers via channel partners in less than a minute. Its acquired expertise has further enabled the platform to enjoy negligible NPAs, despite operating in the high-risk ‘micro’ segment of the market. Also Read – Reflecting on Apple’s ‘Crush!’ Ad: A Debate on Technology’s Impact on Creativity and Culture ShipRocket, making logistics more seamless One of the primary challenges experienced by nearly all tier II and tier III sellers is that the digital market requires robust logistics operations. However, such sellers neither have a strong channel network as their larger counterparts do nor are they able to match the cost-effectiveness due to lower volumes. This challenge is being solved by logistics aggregators such as ShipRocket, which enables its customers to ship domestically and internationally at a rate of Rs 27/500 grams and Rs. 100/50 grams respectively. The platform has active partnerships with top 17 courier companies, thereby equipping its customers with access to over 26,000 PIN codes in India and over 220 countries. It also provides early-COD to its customers which helps them experience lower turnaround time in terms of payments. CoutLoot, making anyone sell in just 30 seconds It barely matters if you are an established business or a budding homepreneur, CoutLoot is a platform that enables anyone to sell online in just 30 seconds. The Social Offline-to-Online (O2O) commerce platform allows seamless interactions between buyers and sellers through its social-media-based model. It helps aspiring digital sellers from the tier II and tier III market (or any other market in that context) to automatically catalogue their products while also providing logistics, payment, and reconciliation support. Sellers can also share their end-to-end offerings over social media platforms such as WhatsApp, Facebook, etc. with their prospective customers. CoutLoot, an acronym for ‘Couture and Loot’, surely does justice to its name! OKCredit, making udhaar bahi-khaata digital As we know, credit and business go hand in hand. This is why Indian retailers can be seen updating their ‘udhaar bahi-khaata’ or the credit book every day. And modernizing these credit books into a new-age, digital avatar is OKCredit. The bookkeeping application makes it easier for retailers to manage their credit by making this process digital. As an added benefit, the approach ensures that they are not on the receiving end of ‘wear and tear’ of their credit book – which can result in a significant financial loss. Moreover, the platform sends free SMS updates to a shopkeeper’s customers, thereby ensuring all transacting parties are always on the same page. This approach also results in faster credit repayments, thanks to timely payment reminders.

Fintech-based Lending Can Help MSMEs Bounce Back.

Fintech-based Lending Can Help MSMEs Bounce Back.

Fintech-based Lending Can Help MSMEs Bounce Back.
Emergence of Remittance Companies

MSMEs are considered the central engine driving the Indian economy. Prominent players in their constitution are the Kirana stores and neighbourhood mom-and-pop shops visited by all and sundry. Apart from the usual product offerings which is groceries, medical supplies, phone recharges etc., many of these stores also offer remittance services in exchange for a small commission fee. For the working class and the unorganised sectors, this method of wiring money is preferable to visiting a bank since these stores are operational for longer hours and the transaction is paperless.

With 3 cr. (approx.) Jan Dhan bank accounts, Kirana stores became an ultimate choice for the migrants across the country. Their business model requires sufficient working capital to grow their remittance business, however they continue to struggle in search of formal credit assistance to address their liquidity crunch.

This credit gap is being tackled by digital lending companies who are providing unsecured loans and are conscious of the challenges faced by small business owners.

Fintech lending as a driver of change

With advent of fully digitised loan options, fintech firms are emerging as innovative credit disruptors. Ranging from short-ticket loans to merchant cash advances, these loans have flexible repayment tenures that are cognizant of the limitations faced by the unorganised sector.

The usual barriers that restrict the small businesses from availing a formal credit are insufficient/no collaterals, high cost of servicing small loans and absence of credit score. Prospective borrowers are assessed on their business performance using algorithms and machine learning. With no dependency on physical data entry, fintech firms can eliminate the pitfalls created by bias, prejudice and human error.

During the coronavirus crisis, financial strength is key

Over millions of merchants have been left with heavy overheads and crippled earnings due to the pandemic. Small businesses are cash-strapped and require working capital to restart operations. At this juncture, fintech firms like HAPPY are looking to make credit access more inclusive and approachable. Founded by Mr. Manish Khera in 2017, this fully digital lending firm has serviced enterprises dealing with remittance payments, farming, dairy, food and beverages, PoS transaction etc.

Intending to empower these businesses in the current crisis, and after surveying close to 300 MSMEs, Happy has responded with the ‘Lockdown Loan’. It’s a unique concept that provides small business owners access to working capital without the burden of immediate repayment.

These are bullet loans of Rs 25,000 and Rs 50,000 that can be repaid after 6 months. Empathy is at the core of this product, which is why the Lockdown Loan comes with COVID-19 insurance. In case the small business owner test positive for the novel coronavirus, the entire loan will be waived off.

The road ahead

Small businesses contributed 29% to India’s GDP last year. As the government looks to increase this share to a strong 50%, fintech firms like Happy strive to span the gap between policymaking and the final disbursement of funds to small business owners across India.

Protecting your small business against lending fraud: Signs to watch out for

Protecting your small business against lending fraud: Signs to watch out for

The coronavirus pandemic and lockdown has put small businesses in a tight spot. Desperate for working capital, many are reaching out to lenders without checking their credentials leading to a spike in online frauds, as fraudsters are exploiting the rising demand for quick loans.

Protecting your small business against lending fraud: Signs to watch out for

According to RBI data, loan frauds made up the highest percentage of all frauds in FY 2018-19. So, small businesses must be cautious and avail loans only from legitimate lenders to avoid falling prey to scams.

Loan scams that you should be aware of

Moratorium – Fraudsters are currently capitalizing on the 3-month moratorium granted by the RBI, to help ease the loan burden on consumers. This has given scammers the perfect opportunity to defraud customers. 

They call up posing as bank officials and ask for the borrower’s bank details, OTP etc., assuring them that their EMI would be postponed. 

Loans from third parties – Calls are made by fraudsters offering loans from third parties in return for upfront payments. Desperate customers whose applications have been rejected by several lenders fall prey to scams like these and are made to pay money for application and processing fees, for promised loan approvals.

Guaranteed loan approval – Scammers guarantee loans with no eligibility criteria and offer a credit score check, in exchange for a fee. 

Fake sites – Fake internet lending sites, imitating the interface of well-known brands and NBFCs are created, and then circulated through social media networks. Borrowers, looking for quick loans, fall for these baits, failing to differentiate between real and fake. Customers fill their details on these sites, which are maliciously used by fraudsters. Calls are then made to the customers to extract sensitive financial information, which is used to rob them of their hard-earned money.

Phishing – 

Urgent need for loans forces borrowers to click on emails and text messages offering instant loans. Victims are lured to divulge their banking passwords and credit card details, and end up losing money. 

Vishing (Voice phishing) – Scammers call, pretending to represent reputable lenders and collect personal financial details. Victims are promised pre-approved loans exceeding INR 5 lakhs, with just a few bank account details needed to sanction the loan. Customers are asked to maintain a certain account balance for smooth EMI payments, once the loan is sanctioned. And before you know it, your bank account gets wiped out. 

Cheap loans – Scammers call borrowers, promising cheap loans, and give out details on other loans availed by them. Often, unscrupulous employees of reputed financial institutions offer this information to scammers to make quick money. Borrowers pay the upfront fees for loans and never get the approval. 

Tips to stay safe from loan scams

Here are some easy tips you should follow to keep your money safe during the ongoing crisis: 

  • Check the domain name of the lender’s website and ensure that the URL has ‘https’ and a lock icon. A legitimate lender has an encrypted online loan application page. 
  • Never click on suspicious emails or part with sensitive banking details to anyone over a phone call. Reputed lenders always check eligibility and credit score before offering you a loan. Also, entities like Happy, a fast growing fully digital lending fintech, collect PAN card details, driving license and bank account details only as identity and address proofs. Sensitive data is never shared with third parties.
  • Currently, fraudsters are exploiting tight liquidity conditions caused due to the pandemic, to prey on small businesses. As a solution, Happy has launched a completely reliable lockdown loan for small businesses which has to be repaid after 6 months. In the unfortunate event of the owner getting diagnosed with COVID-19 during the loan tenure, the entire loan is waived off. Happy leverages AI and machine learning along with strict protocols, to offer instant, low ticket unsecured loans to small businesses. So, consider the same if you need immediate funding. 

Conclusion 

Genuine lenders always have a transparent loan application process. Loan processing fees are mentioned in the loan agreement and deducted from the total loan amount, and not as upfront charges. Loans are approved only after checking your eligibility and credit score. So, if a lender doesn’t disclose details of the loan application and appraisal, reject them immediately to prevent frauds.

Fintech-based Lending Can Help MSMEs Bounce Back.

Fintech-based Lending Can Help MSMEs Bounce Back.

Fintech-based Lending Can Help MSMEs Bounce Back.
Emergence of Remittance Companies

MSMEs are considered the central engine driving the Indian economy. Prominent players in their constitution are the Kirana stores and neighbourhood mom-and-pop shops visited by all and sundry. Apart from the usual product offerings which is groceries, medical supplies, phone recharges etc., many of these stores also offer remittance services in exchange for a small commission fee. For the working class and the unorganised sectors, this method of wiring money is preferable to visiting a bank since these stores are operational for longer hours and the transaction is paperless.

With 3 cr. (approx.) Jan Dhan bank accounts, Kirana stores became an ultimate choice for the migrants across the country. Their business model requires sufficient working capital to grow their remittance business, however they continue to struggle in search of formal credit assistance to address their liquidity crunch.

This credit gap is being tackled by digital lending companies who are providing unsecured loans and are conscious of the challenges faced by small business owners.

Fintech lending as a driver of change

With advent of fully digitised loan options, fintech firms are emerging as innovative credit disruptors. Ranging from short-ticket loans to merchant cash advances, these loans have flexible repayment tenures that are cognizant of the limitations faced by the unorganised sector.

The usual barriers that restrict the small businesses from availing a formal credit are insufficient/no collaterals, high cost of servicing small loans and absence of credit score. Prospective borrowers are assessed on their business performance using algorithms and machine learning. With no dependency on physical data entry, fintech firms can eliminate the pitfalls created by bias, prejudice and human error.

During the coronavirus crisis, financial strength is key

Over millions of merchants have been left with heavy overheads and crippled earnings due to the pandemic. Small businesses are cash-strapped and require working capital to restart operations. At this juncture, fintech firms like HAPPY are looking to make credit access more inclusive and approachable. Founded by Mr. Manish Khera in 2017, this fully digital lending firm has serviced enterprises dealing with remittance payments, farming, dairy, food and beverages, PoS transaction etc.

Intending to empower these businesses in the current crisis, and after surveying close to 300 MSMEs, Happy has responded with the ‘Lockdown Loan’. It’s a unique concept that provides small business owners access to working capital without the burden of immediate repayment.

These are bullet loans of Rs 25,000 and Rs 50,000 that can be repaid after 6 months. Empathy is at the core of this product, which is why the Lockdown Loan comes with COVID-19 insurance. In case the small business owner test positive for the novel coronavirus, the entire loan will be waived off.

The road ahead

Small businesses contributed 29% to India’s GDP last year. As the government looks to increase this share to a strong 50%, fintech firms like Happy strive to span the gap between policymaking and the final disbursement of funds to small business owners across India.

Protecting your small business against lending fraud: Signs to watch out for

Protecting your small business against lending fraud: Signs to watch out for

The coronavirus pandemic and lockdown has put small businesses in a tight spot. Desperate for working capital, many are reaching out to lenders without checking their credentials leading to a spike in online frauds, as fraudsters are exploiting the rising demand for quick loans.

Protecting your small business against lending fraud: Signs to watch out for

According to RBI data, loan frauds made up the highest percentage of all frauds in FY 2018-19. So, small businesses must be cautious and avail loans only from legitimate lenders to avoid falling prey to scams.

Loan scams that you should be aware of

Moratorium – Fraudsters are currently capitalizing on the 3-month moratorium granted by the RBI, to help ease the loan burden on consumers. This has given scammers the perfect opportunity to defraud customers. 

They call up posing as bank officials and ask for the borrower’s bank details, OTP etc., assuring them that their EMI would be postponed. 

Loans from third parties – Calls are made by fraudsters offering loans from third parties in return for upfront payments. Desperate customers whose applications have been rejected by several lenders fall prey to scams like these and are made to pay money for application and processing fees, for promised loan approvals.

Guaranteed loan approval – Scammers guarantee loans with no eligibility criteria and offer a credit score check, in exchange for a fee. 

Fake sites – Fake internet lending sites, imitating the interface of well-known brands and NBFCs are created, and then circulated through social media networks. Borrowers, looking for quick loans, fall for these baits, failing to differentiate between real and fake. Customers fill their details on these sites, which are maliciously used by fraudsters. Calls are then made to the customers to extract sensitive financial information, which is used to rob them of their hard-earned money.

Phishing – 

Urgent need for loans forces borrowers to click on emails and text messages offering instant loans. Victims are lured to divulge their banking passwords and credit card details, and end up losing money. 

Vishing (Voice phishing) – Scammers call, pretending to represent reputable lenders and collect personal financial details. Victims are promised pre-approved loans exceeding INR 5 lakhs, with just a few bank account details needed to sanction the loan. Customers are asked to maintain a certain account balance for smooth EMI payments, once the loan is sanctioned. And before you know it, your bank account gets wiped out. 

Cheap loans – Scammers call borrowers, promising cheap loans, and give out details on other loans availed by them. Often, unscrupulous employees of reputed financial institutions offer this information to scammers to make quick money. Borrowers pay the upfront fees for loans and never get the approval. 

Tips to stay safe from loan scams

Here are some easy tips you should follow to keep your money safe during the ongoing crisis: 

  • Check the domain name of the lender’s website and ensure that the URL has ‘https’ and a lock icon. A legitimate lender has an encrypted online loan application page. 
  • Never click on suspicious emails or part with sensitive banking details to anyone over a phone call. Reputed lenders always check eligibility and credit score before offering you a loan. Also, entities like Happy, a fast growing fully digital lending fintech, collect PAN card details, driving license and bank account details only as identity and address proofs. Sensitive data is never shared with third parties.
  • Currently, fraudsters are exploiting tight liquidity conditions caused due to the pandemic, to prey on small businesses. As a solution, Happy has launched a completely reliable lockdown loan for small businesses which has to be repaid after 6 months. In the unfortunate event of the owner getting diagnosed with COVID-19 during the loan tenure, the entire loan is waived off. Happy leverages AI and machine learning along with strict protocols, to offer instant, low ticket unsecured loans to small businesses. So, consider the same if you need immediate funding. 

Conclusion 

Genuine lenders always have a transparent loan application process. Loan processing fees are mentioned in the loan agreement and deducted from the total loan amount, and not as upfront charges. Loans are approved only after checking your eligibility and credit score. So, if a lender doesn’t disclose details of the loan application and appraisal, reject them immediately to prevent frauds.