The Indian government has been asking local banks to work cooperatively with SMEs by providing much-needed liquidity during the COVID-19 crisis. Several local digital lenders and non-bank finance companies (NBFCs) will be offering credit solutions to Indian businesses.
U GRO Capital, a Bombay Stock Exchange (BSE) listed lender that aims to support the growth of SMEs in India, is planning to introduce an end-to-end online lending platform for small businesses. U GRO aims to serve half a million SME clients.
India’s Sanjeevani platform was launched on July 1, 2020. It provides unsecured loans between ₹10 lakh (appr. $13,250) and ₹25 lakh (appr. $33,130) for up to a 36 month (or three-year) period. It also offers secured loans between ₹50 lakh (appr. $66,000) and ₹2 crore (appr. $264,000) for seven to 10 years.
The Sanjeevani platform is reportedly planning to provide a moratorium of up to 3 months to help SMBs that may not have adequate resources due to the Coronavirus crisis.
As reported by The Hindu Business Line, SOLV, a B2B digital platform for SMEs, has introduced a credit card with assistance from Standard Chartered Bank in order to help local businesses take care of expenses – which may include supplier payments, purchasing of raw material, settling utility bill payments and several other daily requirements.
Instamojo, a comprehensive SME-solutions provider, has launched “InstaCash,” which allows businesses to obtain small loans (appr. ₹1 lakh) for around two weeks. Instamojo claims that its operations have grown by around 30% since lockdowns began.
A ₹3-trillion Crore Emergency Credit Line Guarantee Scheme (ECLGS) has also been introduced. It aims to offer a steady flow of capital to India’s SMBs, according to a report from ICICI Securities, which is one of India’s largest broking firms.
It offers various investment services including online and offline share trading, buying and selling of mutual funds, portfolio management services, insurance, fixed deposits and loans.
.The report confirmed:
“Banks have disbursed ₹329 billion (of the cumulative sanctions worth ₹754 billion). As anticipated, PSU banks are in the forefront (two-third of disbursements) with SBI taking the lead (one third).”
As reportedly recently, India’s Department of Economic Affairs, the Reserve Bank (RBI), and Securities and Exchange Board of India continue to support the country’s Fintech sector.
PwC and the Federation of Indian Chambers of Commerce & Industry have recommended that banks and Fintechs should perform Video KYC Checks during COVID-19.
India notably remains a “crucial” market for the Dubai International Financial Center, according to recent statements from Salman Jaffery, Chief Business Development Officer at DIFC.
