This step by NeoGrowth can be helpful for small businesses of India, as it provides an option to get a collateral free loan of up to INR 20 lakhs.
NeoGrowth, a Micro Small and Medium Enterprises (MSME) focused FinTech lender, has announced the launch of its new business loan offering, NeoGrowth Accelerator. NeoGrowth Accelerator is a collateral-free term loan of up to INR 20 lakhs for the underserved MSME segment comprising Manufacturers, Distributors, Traders, Dealers, and Service Providers. The company unveiled this instant loans scheme on the occasion of World MSME Day.
According to the company, the product is designed to fulfill the working capital requirements of GST-registered MSMEs based on their cash flows. This new launch is in tune with NeoGrowth’s ‘Keeping It Simple’ philosophy.
The company is now live on the Account Aggregator framework to further strengthen digital lending for MSME borrowers. Through the Account Aggregator (AA) ecosystem, NeoGrowth is said to address the MSME credit gap in India by adopting the Non-Banking Financing Companies sector into the processes. The company integrates account aggregator information, credit bureau scores, proprietary data, and other internal metrics to thoroughly assess potential borrowers and provide hassle-free loans that leverage the digital payments ecosystem. MSME customers will now be able to share all their banking information in a consolidated dashboard and avail credit in a seamless manner.
Arun Nayyar, Whole-time Director and CEO, NeoGrowth, during the launch said, “Our objective has been to enhance credit penetration among small businesses with seamless access to loans. Getting loans has always been a challenge for small retailers in India due to complex documentation, time-consuming procedures, and the traditional approach to underwriting. The Accelerator loans offer two convenient and quick options for businesses, with minimal paperwork to help our borrowers scale up their business easily. To make the loan journey simpler for our MSME customers, we have integrated the Account Aggregator framework across our processes.”
With close to a decade’s experience in serving the credit needs of India’s MSMEs, NeoGrowth has a finger on the pulse of small business owners and is constantly innovating to provide the best-in-class credit offerings to its customers. NeoGrowth leverages the latest developments in technology and data science to strengthen its unique product offerings.
How Will This Scheme Help Small Businesses
Businesses, not only in India but in almost all over the world, take some time to grow and make profit. This waiting time for the profit, depending on the industry, can go up to five to ten years. Most of the business fails to wait for their business to work and announce temporary or permanent shutdown. Out of all the businesses that start, in India, approximately 20 percent fail within the first year. Common reasons for the closure of small business are lack of capital and running costs. This step by NeoGrowth can be helpful for small businesses of India, as it provides an option to get a collateral free loan of up to INR 20 lakhs.
