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FISME to launch a digital lending platform

May 04, 2022

FISME to launch a digital lending platform
MSME association Federation of Indian Micro and Small and Medium Enterprises (FISME) has signed a memorandum of understanding (MoU) with financial guarantee provider Eqaro Surety to set up a digital lending platform for MSMEs in the country.

FISME said the platform is supposed to be launched this year and will give access to insurance and let loose money to ₹25 lakh to fulfill MSMEs’ need for urgent funds post due diligence of investment of their organizations. The credit would be supported by guarantees from Eqaro.
“This resembles an overdraft office at first fixed at ₹25 lakh that could be tapped whenever from anyplace should an MSME need reserves,” said Prashant Patel, President, FISME in an articulation.
The MoU was endorsed by Patel and Eqaro’s CEO Vikash Khandelwal. FISME addresses north of 740 MSME relationships with an effort of more than 2 million MSMEs.
“Loaning has customarily been security-based. This interesting and first time in Quite a while drive will assist MSMEs with getting simpler access to credit supported by a guarantee ensure without the need to set up collaterals,” said Khandelwal.

While surety guarantees are a demonstrated monetary instrument used in developed nations, for example, the US instead of traditional collateral securities or bank and performance guarantees, it is still in its beginning stages in India, said FISME.
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