Financiers, intermediaries line up funds for MSMEs
At a time when micro, small and medium enterprises (MSMEs) are scouting for funds to keep their operations on, a host of financiers and intermediaries have come forward to meet the demand by capitalising on digital technology.
Arvog, which offers debt, equity and funding, has announced digital micro loans amounting to ₹250 crore to MSMEs to help them come out of the crisis.
The country’s 60 million MSMEs — businesses with annual revenue up to ₹250 crore — make enormous contribution to both India’s employment and its gross domestic product (GDP).
The firm has tied up with FinancePeer and PayMe India to provide digital micro loans at an 18% rate of interest.
The focus will be to look for companies having scalable ideas and a robust business model. Arvog would then step in and help them realise their growth plans with sustainability.
Meanwhile, London-based CreditEnable, an AI-driven SME credit business, has ramped up its activities in India to help improve access to finance for SMEs during COVID-19.
CreditEnable’s India marketplace currently caters to more than 20 leading lenders with ₹53,700 crore of loan books.