How CredAble And Aditya Birla Finance Are Boosting MSMEs Through Advanced Lending Solutions

Fintech firm CredAble and Aditya Birla Finance Limited (ABFL) have joined hands to transform MSME lending in the country with the utilization of technology and advanced analytics.

Over the past six months, ABFL has experienced a surge in lead flow, with approximately 80,000 leads generated through CredAble's solution. This collaboration has facilitated the establishment of a substantial database for ABFL, enhancing analytics for the cross-selling of various products such as merchant financing, top-up loans, and equipment financing.

Notably, the implementation has contributed to an increase in Net Interest Margins (NIMs). The integrated solution has demonstrated efficiency in allowing Relationship Managers to seamlessly handle both manually and digitally sourced leads, the company said.

CredAble has introduced a comprehensive digital underwriting solution, including case management, intelligent workflow, credit risk assessment, and decisioning support systems. Through this solution, ABFL has introduced "Udyog Plus" to the SME ecosystem—an end-to-end solution addressing crucial pain points in the B2B lending process and catering to the diverse needs of MSMEs.

Precision in Digital Lending

Nirav Choksi, Co-founder and CEO of CredAble, emphasized the importance of accuracy and precision in the digital lending landscape. “State-of-the-art underwriting today involves a fully digital workflow and extensive use of a wide range of third-party data. Entities lacking systems with alternative credit scoring mechanisms will be at a disadvantage in pricing risk effectively and supporting MSMEs competitively. We're extremely delighted to back ABFL with our underwriting solution that automates the end-to-end lending experience that was previously highly manual,” he said.

Utilizing advanced machine learning algorithms and in-built analytics tools, CredAble has developed a suite of financing solutions tailored for small and medium-sized businesses, commonly classified as high-risk assets.

Rakesh Singh, MD & CEO of Aditya Birla Finance, termed the collaboration with CredAble as a pivotal moment for ABFL. “CredAble's digital underwriting solution has streamlined lending processes and significantly improved efficiency in serving businesses, setting a new benchmark in unsecured business loans for MSMEs,” he noted.

Unlocking Opportunities for MSMEs

Enhanced Access to Credit: The collaboration aims to leverage technology and advanced analytics to streamline the MSME lending process. This will likely result in improved access to credit for MSMEs by optimizing lead flow and creating a substantial database for more informed decision-making.

Diverse Product Offerings: The collaboration facilitates cross-selling of various financial products such as merchant financing, top-up loans, and equipment financing. This provides MSMEs with a broader range of financial solutions, allowing them to choose products that best suit their specific business needs.

Efficient and Automated Processes: The introduction of CredAble's digital underwriting solution, including case management and intelligent workflow, is expected to streamline and automate the end-to-end lending experience. This efficiency can translate into quicker loan approvals and disbursements, benefiting MSMEs in need of timely financial support.

Risk Pricing Advantage: The utilization of alternative credit scoring mechanisms and advanced analytics tools by CredAble may provide a risk pricing advantage. This means that MSMEs could potentially benefit from more competitive interest rates and terms, supporting them in managing their finances more effectively.

Comprehensive SME Ecosystem Support: The introduction of "Udyog Plus" as an end-to-end solution specifically designed for the SME ecosystem addresses critical pain points in the B2B lending process. This comprehensive support is likely to cater to the diverse needs of MSMEs, potentially empowering them with the tools and resources required for sustained growth and development.