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B2B marketplace TradeIndia ventures into MSME lending
July 12, 2022
On the rationale behind the launch, Sandip Chhettri, CEO, TradeIndia told Financial Express Online, “Last year in June, post the second wave of the Covid pandemic, we did a survey of 50,000 SMEs and found 83 percent of the respondents confirming their inability to raise timely credit. This made us introspect if we could be a one-stop solution for the SMEs, where we go beyond providing access to a marketplace by also supporting them in raising funds to meet their next big order.”
MSMEs in India face a huge credit gap of ₹20-25 lakh crore and some of the key reasons behind the lack of access to capital are the absence of collateral, incomplete books of accounts, preference for cash transactions, and lack of credit history.
“Given we have the transaction history of buyers and sellers on our platform, we can act as guarantors for them,” said Chhettri. TradeIndia didn’t disclose the names of any lendinpartnerser but said they are currently in talks with multiple NBFCs and banks.
The B2B e-commerce platform would do the initial screening of the MSMEs’ eligibility for the loan based on their transaction history, business turnovers CIBIL score, and balance sheet.
Important Links:
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