Saturday, 23 January 2016

Peer-to-peer lending helping MSMEs

There is a lot of hype around the recent Startup India program that was unveiled by the Prime Minister and the Department of Industrial Policy and Promotion (DIPP).

However, we still await the concrete measures and action plan to promote and help the MSMEs and the startup sector, especially the fund of funds to be launched.

At the initial stages of a business, companies neither has requisite turnover (or history) nor assets (for collateral) to approach financial institutions. Financial institutions, on their part, have set short listing criteria to accept applications and in some cases personal loans are not available to self-occupied individuals. The rising cases of NPAs affecting the banks is not helping the cause either.

In such cases how can businesses take off or maintain a growth path?

Businesses can look at Alternative Finance options to raise funds.

Peer-to-peer lending is just one of the innovative ways to ensure short to medium funding.

In peer-to-peer lending platforms businesses can look at raising funds (debt) from individuals who would like to invest, their cash flows, and earn a decent return on monthly basis.

Benefits to MSMEs to take such an approach is:

  • No Guarantor or collateral required
  • Flexibility in amounts
  • No past history or credit reports required
  • No prepayment penalties
  • Non dilution of equity at an initial stages of business
  • No limit on the number of individuals from whom investment can be taken

 One has to just register and apply for loans credibility and transparency are the most essential parameters in such cases and to ensure that your loans are funded.

To know why to borrow with us please visit


@RupaiyaExchange is a virtual market place for Peer to Peer Lending.

#peer-to-peer lending #p2plending #loans #borrow #fintech #creditcards #debt #startupindia #startupindia

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