A “match-making” platform to connect MSMEs with banks for affordable funding will be launched by the Chamber of Indian MSMEs

Many business owners look for loans but often need help finding a bank or branch that will be enthusiastic about giving them a loan. Similarly, banks want to finance MSMEs but need help locating the right business. Like marriage websites, the MSMEs Loans platform would assist both parties in finding the ideal match.

● A new website called MSME loans has been developed by the Chamber of Indian Micro, Small, and Medium Enterprises to act as a “match-maker” between MSMEs looking for loans and lenders.
● The purpose of creating MSME loans.co.in, according to Mukesh Mohan Gupta, President of the MSME association, is to help MSMEs with the loan application process while assisting banks in finding creditworthy borrowers.
● “Many entrepreneurs seek loans but struggle to find the right bank or branch that is enthusiastic about giving them loans.” Continued Gupta.
● Similarly, banks want to finance MSMEs but need help locating the right business. Like dating websites, the MSMEs Loans platform will assist both parties in finding the ideal match.
● To use the platform, MSMEs must upload their loan request, financial statements, and other supporting documents to the MSMEs Loans Portal. These papers may include ITRs and GST returns, among others. The information will then be distributed to all the lenders in the Market, who will review the financial records and determine whether the MSMEs account has the potential to be profitable. The loan offer would be made directly to the MSMEs owners by interested banks, assisting them in gaining access to cash at reasonable rates.
● While the bank’s claims will be verified offline, the loan application procedure will be completed online.
● According to Gupta, the turnaround time between loan application and payment may be significantly shortened by allowing banks to choose MSMEs accounts while giving MSMEs access to affordable finance.
● The portal will make Collateralized and unsecured loans available to new and existing businesses. The Prime Minister Employment Generation Programme (PMEGP), MUDRA, and Credit Guarantee Trust for Micro and Small Enterprises are just a few government programs for which MSMEs can apply for loans.
● To help banks identify the most dependable businesses, the MSMEs Loans platform has worked with the credit bureau CIBIL to provide credit scores for SMEs.

Conclusion:

Despite being in the trial phase, the potential has already received over 300 loan requests from MSMEs. It has forged alliances with traditional lenders like Flexiloans and online lenders, including Punjab National Bank, Central Bank of India, Union Bank of India, and IDBI Bank.