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Phygital model changes credit journey for nano entrepreneurs

June 15, 2022

Phygital model changes credit journey for nano entrepreneurs
India is sitting on a gold mine. When tapped, it can possibly develop the economy dramatically and work on the lives and livelihoods of millions.

This gold mine is made up of nano entrepreneurs who run private companies with an annual turnover of $13,000 (₹10 lakhs) to $130,000 (₹1 crore). They could be your neighborhood Kirana store shopkeepers, beauty shop owners, small-scale manufacturers, food distributors, or wholesalers.

The vast majority of these private companies in India stay casual and manage cash. Indeed, even the organizations that are completely enrolled and formalized battle with admittance to formal credit, frequently because of an absence of land or property security. The new pandemic has shown us the weakness of nano entrepreneurs who are more inclined to income risks and terminations, particularly because of an absence of access to working capital.

Regularly, nano entrepreneurs are practical organizations with around 10 to 20 specialists and some type of fixed resources, tools, or stock. Yet, conventional loaning depends on property security and normally requires extended desk work, something nano entrepreneurs don’t approach in view of their limited scale.

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