Finding the Best SME Loan to Grow Your Business

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The push for going digital has had a profound effect on one sector, the banking sector. And when we say banking, it includes core banking solutions as well as Fintech companies. The reason being, the banks are increasingly looking towards Fintech companies to provide technological and product related innovation in the country, since these companies have more qualified and up-to-date R&D departments. For example, LendingKart – a leading Fintech company has setup a separate technological division for the very purpose of streamlining its operations with technology.

Fintech companies are not only limited to providing SME loans to grow your business anymore, but have begun to dabble in other financial products like securities trading and insurance. The efficiency of Fintech firms combined with the government’s vision of creating a ‘Digital India’ means you are faced with minimal documentation if you have completed certain Aadhar (formerly UID) related eKYC formalities.

Even RBI has indicated that they would like to see a greater partnership between the banks and Fintech companies due to the above-mentioned R&D efficiency of these organisations. Thus, a partnership is deemed mutually attractive and beneficial as Fintech Companies often face R&D related capital constraints and larger banks can provide necessary help. RBI has also accepted the important role these companies are playing in providing SME loans to grow business in India.

 

So why are Fintech co’s finding so much traction in the financial market?

The reasons are simple, small and medium enterprises (SMEs) in India face two critical issues. Number one is poor availability of short term and long term credit and number two is the high cost of credit. Fintech companies are competing for this segment of market to build a credible small ticket lending market. As SMEs are one of the major contributors to the Indian economy, the potential here is huge.

How to choose a SME loan provider to grow your business?

As discussed earlier, some of the Fintech firms are diversifying their business in to other financial and business solutions, and some like LendingKart are exclusively focusing on SME loans. So, it depends on your capital and financial needs, if you are simply looking for an SME loan to grow your business, a Fintech firm like LendingKart will be your best bet, as they cater an exclusive service and are in a better position to offer more personalised terms and conditions on your loan. Another benefit of getting a loan from NBFC (non-banking financial company) is the minimal hassle you go through while applying for a loan andthe quick rate of approvals.

So, take your pick, if you are a small enterprise and need short term working capital you can apply for a loan with LendingKart and similar Fintech firm. Or, if your financial needs are more diversified, you can select other Fintech firms that suit your needs.

What are the other benefits of banking with a Fintech company?

Apart from the hassle-free way of doing business and gaining quick access to working capital, Fintech firms also have a huge potential in the future. As companies like LendingKart build upon their tech, soon it can become possible to fulfil all your financial needs through a single portal. As an SME, it is imperative for you to focus on your business to stay competitive and profitable, and Fintech firms keep on adding that extra bit of convenience to your day-to-day business operations with their innovation and market foresight.

How to get an SME loan from LendingKart?

LendingKart has disbursed loans to SMEs in over 500 cities across India, and the reason they are so successful with this is the extremely easy application process. You need zero offline interaction during the application process (although you can apply offline). You are required to submit your bank statement, proof of registration and VAT returns for the previous year and you are done. Within 3 working days, you’ll receive an approval of your SME loan application with an interest rate specifically calibrated for you.