MUDRA, which stands for Micro Units Development and Refinance Agency is a financial institution set up by Government of India for development and refinancing micro unit enterprises. The purpose of MUDRA is to provide funding to the non-corporate small business sector through various Last Mile Financial Institutions like Banks, NBFCs and MFIs. It was formally launched by Honorable Prime Minister Narendra Modi on 8th April 2015. MUDRA is a refinance agency and not a direct lending institution. Prest Loans (www.prestloans.com) is one such NBFCs which is a pioneer in providing, Business Loans, MSME Loans (Long & Short term) for micro and small enterprises.

Micro- Enterprises

Micro Enterprises are the largest source of employment after agriculture sector and constitutes of about a major economic segment in our country. This segment includes micro units engaged in manufacturing, processing, trading and services sector. These are usually proprietorships or owned single handedly (formally known as Own Account Enterprises). These are also referred as Non-Corporate Small Business sector.

Majority of the Own account enterprises pertain to Rural sector and out of that too majority of them pertain to the manufacturing sector.

The Non-Corporate Small Business Sector

Non-Corporate Small Business Sector is perhaps one of the largest disaggregated business ecosystems in the world sustaining around 50 crore lives.

This sector comprises of myriad of small manufacturing units, shopkeepers, fruits / vegetable vendors, truck & taxi operators, food-service units, repair shops, machine operators, small industries, artisans, food processors, street vendors and many others.

It is surprising that such financial needs of this sector are not being met actively and they are largely self-financed or rely on personal networks or moneylenders.

Pradhan Mantri MUDRA Yojana (PMMY) was launched to harness this untapped potential market. Meeting the financial needs of this sector would not only ensure higher productivity and higher employment rates but also give boost to the Indian economy.

As we can see from the following figures, majority of the loans under PMMY were disbursed to SC/ST/OBC categories and women. 

Types of Loans under PMMY

Under the PMMY, loans can be availed uptil 10 lakhs (following are the details). It was launched to ensure that cheaper loans with minimum documentation can be disbursed quickly to those in need.

• Shishu: covering loans upto Rs. 50,000/-
• Kishor: covering loans above Rs. 50,000/- and upto Rs. 5 lakh
• Tarun: covering loans above Rs. 5 lakh and upto Rs. 10 lakh

Prest Loans - wwww.prestloans.com - seeks to empower this sector by providing loans on above mentioned lines.

Critics' Notion

As per the data available on Mudra Yojana's official website almost 13 crore people were given loans under the scheme till May 25, 2018.

The total sanctioned amount of loan under Mudra Yojana was Rs 6 lakh crore out of which Rs 5.81 lakh crore had been disbursed to the beneficiaries.

However, the critics often point out that the amount of loan disbursed through this scheme cannot be considered large enough to launch a start up that could provide jobs to others. But this statement is misleading.

As per MUDRA Annual Report 2016-17; the average loan size under PMMY during FY 2016-17 increased to Rs. 45,471 as against Rs. 39,405 in the previous year. Similarly, the average loan size under Shishu category at Rs. 23,317 has been higher than that of Rs. 19,411 in the previous year. There is little change in the average loan size under Kishor and Tarun in FY 2016-17 with respect to FY 2015-16. But note that the average loan size under Kishor is Rs. 2 lakh and under Tarun is 7.75 lakhs.  

The government has won laurels in identifying the need of hour by launching various schemes to enable Micro Enterprises, SMEs and there is no doubt about the fact that PMMY will continue to provide the necessary boost to these enterprises and our economy. Prest Loans (www.prestloans.com) is one such NBFC through which hassle free small business loans and MSME loans can be availed with minimum documentation.

Sources:

https://bit.ly/2st8qEi

https://bit.ly/2sqYoUn

Small businesses, self-employed professionals and Micro, small and medium enterprises (MSMEs) face a unique challenge while trying to access debt funding from banking system related to their credit history. Every time they are told that there is something wrong about their CIBIL while may be sometimes they have no idea what the CIBIL is!

Many a time they are told that their CIBIL score is – 1 (Minus One) hence they cannot get a credit facility. Here is a guide how to keep your CIBIL score good and how to get a loan despite negative score.  

What is CIBIL score?

The first criterion which is used to determine the eligibility for any kind of loan is the credit score prepared by CIBIL (Credit Information Bureau of India Limited – now part of Trans Union). CIBIL score is a three-digit numeric summary of your entire credit history, based on monthly information provided by banks and other financial organizations. It is usually in the range from 300-900 on the scale of 1000 where having a score of above 750 makes you a decent and reliable borrower. The higher your CIBIL score, the more are your chances of getting a better deal on your loan.

There are 4 major credit information agencies who track the credit history of borrowers as reported by various lenders be it banks or NBFC companies like www.prestloans.com . These agencies are: -

1.     Trans Union CIBIL

2.       Equifax Credit Information Services

3.       Experian Credit Information Company

4.     CRIF High Mark Credit Information Services

How to maintain a decent CIBIL score:

·      Payment History: Delayed payments, dues or defaulting EMIs (loan installments) negatively affect the score. Thus, a business owner needs to keep a check on the payments due and avoid defaulting on EMIs.

·      Keep a check on utilization of Credit Card Limit: Increased spending might not directly affect the score but the increasing outstanding balance of your credit card is seen as repayment burden thereby negatively affecting your score.

·      Percentage of Unsecured Loans: Having a higher percentage of unsecured loans such as credit cards, personal loans etc. than secured loans such as auto loan, home loan etc. could negatively affect the credit score hence avail unsecured loans very carefully.

·      Multiple loans and Credit Cards: Multiple loans and credit cards show an increased debt burden which lower the score hence should be avoided.

 ·      Overdues: Even a small amount overdue for a long time on credit card or loan will impact the score negatively big time. This one is most important hence don’t keep anything due and take a NOC/ loan/ credit clearance certificate from your lender when you repay the loan.

 Even if you have not adhered to the above-mentioned check points, do not despair, one can still be eligible for a loan despite a low or negative CIBIL score.

What is negative CIBIL Score: -

The above credit information companies give a “- 1” (minus one) score which is a negative score if you do not have any credit history; that is when you have not availed any loan or credit card in the past. While you may feel good about it and say you have not taken any loan so far, lenders see it as negative as they don’t get any historical data to depend upon. Most banks or NBFC companies don’t lend to people with “minus one” score. However new age digital lenders like www.prestloans.com consider these profiles also for providing debt facilities to small businesses.

How to be eligible for a loan despite a low or negative CIBIL score?

 ·     Good and stable source of income: Depicts your ability to repay the loan, and then even a low CIBIL score would not count much.

·      Timely Filing of Taxes: Being a regular tax payer will also work in your favour. Show the tax receipts of the last 3 years to the lenders and it would be an additional point which would show your sincerity to the lender, and thereby assure them of repayment from your end.

·      A secured job with better career prospects: A secured government job or a stable job with a reputed company would prove that you are gainfully employed with a growth in future prospects. One can show the salary slips of past 6 months to assure the lender of your repayment abilities.

·      Utility bills: Pay and show timely payment of all your utility bills like electricity, telephone, water etc. as this is considered a good habit and sincerity in payments.

Concluding remarks:

CIBIL or Credit score is important and plays a significant role in getting a loan sanctioned but it does not remain the only criteria for the eligibility of loan sanction. It is always better to keep at least a healthy CIBIL score by keeping a check on the above factors, but one could even be eligible with a low or negative score by keeping above points in your favor. Most new age companies like www.prestloans.com make their own credit score based on alternate data and lend of eligible businesses and MSME units.

भारतीय अर्थव्यस्था विश्व की सबसे तेज़ी  बढ़ती हुई अर्थव्यवस्था है । ग़ैर कृषि क्षेत्र में 50 मिलियन अतिरिक्त अवसर उपलब्ध हैं । ऐसा इसलिए हुआ है क्योंकि एम एस एम ई (MSME) का सरकार ने डिजिटलाइज़ेशन कर दिया । जिससे रोज़गार के अवसरों में तो बढ़ोतरी हुई साथ में माइक्रो, स्माल, और मीडियम स्केल की इंडस्ट्रीज को अपना व्यापर  फ़ैलाने  का अवसर मिला जिसका उन्होंने भरपूर फायदा उठाया इसका फायदा भारतीय अर्थव्यवस्था को भी हुआ ।

 भारतीय अर्थव्यस्था की रीढ़ की हड्डी है एम एस एम ई (MSME) क्योंकि माइक्रो, स्माल, और मीडियम स्केल की इंडस्ट्रीज रोज़गार के अवसर तो पैदा करता ही है । भारत के सकल घरेलू उत्पाद में 37.5 % का योगदान भी है । एम एस एम ई (MSME) ने 1 करोड़ 17 लाख  लोगों को रोज़गार दिया है जो की भारत की काम काजी उम्र का 14% है ।

 MSMEs का डिजिटलाइज़ेशन

 डिजिटल टेक्नोलोजी के कारण पूरा वातावरण ही बदल गया है । सबकुछ उपभोक्ता ऑनलाइन करते हैं खासतौर पर अपने मोबाइल पर । TRAI और BCG-Google के अध्ययन के मुताबिक, भारत में 1.03 अरब मोबाइल यूज़र्स हैं । 35 करोड़ इंटरनेट का उपयोग करते हैं । यही उपभोक्ता ऑनलाइन व्यवसायों की सर्च के साथ लेन देन भी करते हैं ।

 एम एस एम ई (MSME) क्योंकि माइक्रो, स्माल, और मीडियम स्केल की इंडस्ट्रीज रोज़गार के अवसर तो पैदा करता ही है । इसलिए इसके महत्व को देखते हुए सरकार ने डिजिटल करने की पहल की । इसमें शामिल गवर्नमेंट सर्विसेज टैक्स फाइल करना, व्यवसाय को रजिस्टर करना, ऑनलाइन व्यवसाय करने की प्रक्रिया को आसान बनाना, इसके आलावा भारत सरकार का एक और लक्ष्य है भारत में डिजिटल कौशल स्तर बढ़ाने के लिए 1 करोड़ छात्रों को ट्रेनिंग दी जाये ।

 e-commerce बड़े शहरों और ग्रामीण इलाकों की कंपनियों को दुनिया के ग्राहकों से जुड़ने और व्यापार के लिए आसान उपाय प्रदान किया है । इससे आप नए बाज़ारों का पता लगा सकते हैं, और अपने क्षेत्र के बड़े बड़े दिग्गजों के साथ कम्पीटिशन कर सकते हैं । आप अपने सीमित ज्ञान, भाषा, सांस्कृतिक मतभेद और पुरानी मानसिकता और अज्ञानता के कारण आप अपने अंतर्राष्ट्रीय बाजारों में प्रवेश करने के अवसर को सीमित कर सकते हैं।

 भारत में डिजिटल इम्पैक्ट को एनालाइज़ करने के लिए नेट कनेक्टिविटी, वेबसाइट और e-commerce अलग अलग स्तरों पर वर्गीकृत किया गया । लोग डिजिटल माध्यमसे कैसे कनेक्ट रहे इसका चार स्तरों --- ऑफलाइन, कनेक्ट, इनेबल और एंगेज्ड विश्लेषण करता है ।

 अगर आप एक दुकान खोलकर मारकेट मैं बैठते हैं तो आपके  ग्राहकों की संख्या लिमिटेड हो जाती है । लेकिन अगर आप ऑनलाइन आ जाते हैं तो पूरा विश्व आपका ग्राहक हो जाता है । और यदि आप MSME के माध्यम से e-commerce वेबसाइट से जुड़ते हैं तो आपकी पहुँच और भी व्यापक हो जाती है । क्योंकि फिर आप घर बैठे ही पूरे विश्व में अपना प्रोडक्ट बेच सकते हैं । स्नेप डील (Sanp Deal) ने एक अध्ययन में यह बात कही की भारत में एक एंटरप्रिनर (Entreprenuer) e-commerce की वेबसाइट द्वारा अपने व्यवसाय का संचालन करता है तो अपनी आय को 51% तक बढ़ा सकता है । अध्ययन में यह भी कहा गया की MSME के एक ऑनलाइन बिक्री चैनल www.msmeshopping.com अपनाने पर उसके व्यवसाय में करीब 46% की वृद्धि हुई । ecommerce उद्योग ने एसएमई को बेमिसाल अवसर प्रदान किए हैं । वित्तीय संस्थाएं जैसे www.prestloans.com और बैंक भी इस समुदाय को लोन देने को तत्पर हैं .  

 इस तकनीक को अपनाने पर निम्न लिखित लाभ हुए :-

 यह ऑफलाइन के मुकाबले 2 गुना तेज़ी से प्रॉफिट बढ़ता है ।

 रिपोर्ट से पता चलता की ऑनलाइन व्यवसाय करने वाले 51% लोग शहर से बाहर सामान बेचते हैं । जबकि ऑफलाइन वाले 29% ।

 ऑफलाइन बिज़नेस करने वालों के मुकाबले में ऑनलाइन 5 गुना ज़्यादा रोज़गार के अवसर पैदा करता है ।

 निष्कर्ष (conclusion)

भारत में बिज़नेस का डिजिटलीकरण उपभोक्ताओं के तेज़ी डिजिटलीकरण अपनाने के कारण हुआ है । इसी कारण से डाटा ट्रैफिक में बढ़ोतरी हुई और नई तकनीक पर बेस्ड स्टार्टअप एस्टेब्लिश किये गए । स्माल एंड मीडियम स्केल 8 करोड़ लोगों को रोज़गार देकर वह अर्थव्यवस्था में एक महत्वपूर्ण भूमिका निभाता है, जो मेनुफेक्चरिंग का 45% है और देश के 40% निर्यात का योगदान करता है । ऑनलाइन खरीदारी 18% वार्षिक बढ़ी है । दुर्भाग्य से, भारत में 5 करोड़ एसएमई में से 5-6% से कम ऑनलाइन उपस्थिति है। यह निष्कर्ष निकाला जा सकता है कि डिजिटलीकरण के भारत में माइक्रो, स्माल और मीडियम स्केल पर महत्वपूर्ण सकारात्मक प्रभाव पड़ा है। नए ज़माने की NBFCजैसे www.prestloans.com आदि इन सब को लोन दे कर सहायता करने को हमेशा तैयार है |

The Reserve Bank of India (RBI) has taken a keen interest in Non-Banking Financial Corporations (NBFCs) in recent times. If one looks at the official website, the most number of announcements and declarations have come in 2017 and 2018. The major announcements include the Ombudsman directive, the P2P lending platform guidelines and the categorization of NBFCs. Each of these regulations have their specific features which will have their unique impact on the lending sector. The financial analysts at Prest Loans (www.prestloans.com) present an analysis of the impact of these guidelines covered with where NBFCs and the RBI might be headed.

We should start with a brief history of how NBFCs have been regulated. India has always had an active undercurrent of lending activity that was carried out outside the scope of traditional banking. NBFCs sought to regularize that trade and give it more structure and organization while still being nimble and swift when compared with their banking counterparts. The growing credit demand of the nation and the growth of information technology both fueled the growth of NBFCs, who used the latter to build the required expertise to quench the former. Hence, the amendment of the Reserve Bank of India Act, 1934 (into RBI Act, 1997) captured greater detail about NBFCs¹. On May 30, 1998, SP Talwar introduced the regulatory framework for NBFCs in a landmark seminar² where the role of NBFCs in performing “financial intermediation” was mentioned. Regulations continued to appear (Banking developers and perspectives³ and the extremely important, Non-Banking Financial Companies, 2003⁴ and many more).

The way RBI has been looking at NBFCs has also changed over time. The initial classification was very rudimentary⁴ where NBFCs, “Nidhi companies” and chit-fund companies were recognized. Today, the classification includes about a dozen clearly defined norms. An Asset Finance Company (AFC) is a kind of NBFC which lends to enable economic activity for companies dealing with automobiles, tractors, lathes etc. An Investment Company deals with the acquisition of securities. A Gold Loan NBFC company which majorly provides loan against gold as security, similarly Micro Finance NBFCs (MFIs) focused on loans to small help groups. A Loan Company (LC) helps in providing loans for any other activity other than the ones carried out by AFCs. This show the RBI has built a much better clarity of how to look at and identify NBFCS. Further, NBFCs have been categorized based on asset size as well.

 RBI has continued its work onto the present day on the NBFC sector. The most recent one causing waves is the one which says that the RBI will appoint an Ombudsman⁵ to be the point of contact for complaints. These complaints range from non-payment of interest to levying of hidden charges. They also include the provision of the failure to ensure transparency in the lending process (it will be interesting to see how this transparency is actually interpreted in practice). The Ombudsman directive also makes the previous RBI guidelines even more important as one of the complaint clauses is also the failure to adhere to the RBI guidelines! This puts a lot of pressure on existing NBFCs to appoint Nodal Officers (the regulation included that as well) who will liaise with the Ombudsman to resolve the complaint. This also means that the activities of the NBFC is under much greater scrutiny than ever before.

One of the other epoch-making regulation is about P2P Lending Platforms⁶. The regulation specified that the business of such a platform be “primarily Information Technology (IT) driven” before going to specify regulations about security and business continuity. This was a very modern outlook conveyed by the RBI which forever cemented the importance of technology for NBFCs. The regulation also stipulated the funds transfer mechanism through escrow account mechanisms. It also highlighted reporting requirements and reinforced the need for nodal officers to report to the Ombudsman. Hence these kind of regulations proved that the RBI was indeed taking NBFCs very seriously and that they would consider them to be instrumental for the economic growth of the nation and financial inclusion.

The future for RBI and NBFCs

NBFCs are going to grow to tap into unreached territory and business areas. NBFCs like Prest Loans (www.prestloans.com) also expanding their business borders to stay innovative in the new financial age. There is still a lot of unmet credit demand which banks are trying to fulfill by merging or partnering with smaller technology companies to float more interesting offerings. The RBI is going to monitor the NBFC space even more closely. As a future trend, it will be seen that more and more larger corporations will have their NBFC offshoot that will even operate as an independent firm (to be free of any bureaucratic hurdles which will otherwise defeat the purpose of having a NBFC). It will be interesting then, to see, the kind of regulations that will come into being to better govern such spaces.

Sources:

1: https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=18530

2: https://rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=3

3: https://rbi.org.in/scripts/PublicationsView.aspx?Id=3284

4: https://rbi.org.in/scripts/PublicationsView.aspx?Id=5796

5: https://rbi.org.in/Scripts/BS_NBFCNotificationView.aspx?Id=11221

6: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11137

https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=6857

भारत में बिज़नेस (व्यापर या लघु उद्योग )अनौपचारिक माहौल में किया जाता है । यहाँ ज़्यादातर लोग अपने बिज़नेस को रजिस्टर भी नहीं करवाते हैं । यहाँ बिज़नेस करने की भरपूर क्षमता होने के बाद भी सर्विस (नौकरी) को ही ज्यादा महत्व दिया जाता है । भारत एक युवा शक्ति के रूप में अपनी पहचान बना रहा है । युवा को रोज़गार चाहिए जिससे वह अपने परिवार की ज़रूरतों को पूरा कर सके ।

ऐसे में भारत में छोटे व्यापर या लघु उद्योग को बढ़ावा देने की ज़रूरत है जिससे रोज़गार के अवसर पैदा हो सकें  । बिज़नेस को कैरियर के रूप में अपनाने के लिए भारत सरकार युवाओं को प्रोत्साहित कर रही है । जो नौकरी करने की तुलना में बेहतर विकल्प साबित होगा । इससे रोज़गार के अवसर भी विकसित होंगे । इसके लिए नया बिज़नेस (व्यापर या लघु उद्योग ) शुरू करने के इच्छुक लोगों को एमएसएमई (MSME) प्लेटफार्म के माध्यम से कई योजनाओं के द्वारा सहायता और लाभ प्रदान किये जा रहे हैं  ।

एमएसएमई (MSME)

माइक्रो, स्माल & मीडियम एंटरप्राइसेस (Micro, Small & Medium Enterprises) का लक्ष्य नई स्वदेशी प्रद्योगिकी (तकनीक) को प्राथमिक स्तर पर आर्थिक सहायता उपलब्ध करवाना है । इस नई वेबसाइट को लांच करते समय यूनियन मिनिस्टर कलराज मिश्र ने कहा “यह पोर्टल विशेष रूप से भारतीय एमएसएमई (MSME) को समर्पित है, हमारी लागत कम है इसलिये एनएसआईसी (NSIC) अपने वेब-स्टोर को विकसित करने में सभी प्रकार की सहायता प्रदान करेगा और प्रोडक्ट्स को डिस्प्ले (दिखाने) करने के लिए अलग अलग जगह देगा । उन्होंने इस पोर्टल के बारे में लोगों को एजुकेट करने की इम्पोर्टेंस को समझाया और बताया कि इस प्लेटफार्म पर बेचे जाने वाले सभी प्रोडक्ट एमएसएमई (MSME) से  जाएंगे ! माइक्रो, स्माल & मीडियम एंटरप्राइसेस (Micro, Small & Medium Enterprises): यह 1955 में स्थापित किया गया था ! छोटी इंडस्ट्री (लघु उद्योग) और उनसे रिलेटेड सर्विसेज को सुधार कर सरकार ने एक कम लागत वाले प्लेटफॉर्म को बनाया है जिससे इंडस्ट्रियलिस्ट सीधे अपने इक्विपमेंट्स और मशीनरी ऑनलाइन सीधे उपभोक्ताओं को बेचने में सक्षम होंगे !  www.msmeshopping.com और ecommerce platfarm नए व्यापारी या उद्यमी के लिए आशा की एक नई किरण है ! स्माल स्केल के इंडस्ट्रियलिस्ट (छोटे उद्योगपति) अक्सर पूँजी की कमी, फायनेंस, तकनीक की कमी, लिमिटेड प्रोडक्शन की केपेसिटी जैसी परेशानियों का सामना हमेशा करते रहते हैं, इसलिए यहाँ एमएसएमई (MSME) का रोल बहुत ही इम्पोर्टेन्ट हो जाता है ! जैसे एमएसएमई (MSME) राष्ट्र के निर्माण में भूमिका  निभाता है वैसे ही यह स्माल स्केल के इंडस्ट्रियलिस्ट (लघु उद्योगों) को भी अपने पैरों पर खड़ा होने में मदद करता है ! इसकी सालाना रेजिस्ट्रेशन फीस 5,000 रूपये है, एक बार रेजिस्ट्रेशन करवाने के बाद आप नीचे लिखे लाभ इस पोर्टल से उठा सकते हैं !

• ऑनलाइन पंजीकरण  

• वेब स्टोर मैनेजमेंट

• स्टाइल प्रोडक्ट सेक्शन

• मल्टी प्रोडक्ट  कार्ट

• ऑनलाइन पर्चेसिंग (खरीददारी) और सैलिंग (बिक्री) 

• कस्टमर सपोर्ट (सहायता) 

• पेमेंट गेटवे 

• सिक्योरिटी फीचर्स 

ऊपर लिखी सारी सुविधाएँ बिना किसी अतिरिक्त खर्चे के उबलब्ध (एक्स्ट्रा कॉस्ट) हैं ! जब एक बार सेलर (सामान बेचने वाला व्यापारी या इंडस्ट्रियलिस्ट (छोटा उद्योगपति) फ्लेट इयरली/ सालाना पेमेंट देकर साइन अप करता है, तो वह यहाँ बिना किसी एक्स्ट्रा कॉस्ट (अतिरिक्त खर्चे) के अपने प्रोडक्ट बेच सकता है ! इस प्लेटफार्म पर इलेक्ट्रॉनिक्स, बुक्स, अप्पारेल्स (कपडे), हेल्थ प्रोडक्ट्स, स्टेशनरी, मशीनरी आदि उबलब्ध होते हैं | 

यह नए सेलर की कैसे मदद करता है :-

डॉक्टर एच. पी. कुमार जो एन एस आई सी (NSIC) के सीएमडी हैं उन्होंने कहा “जो ऑनलाइन बिक्री में अपना एक स्थान बनाना चाहते हैं, यह स्टार्ट अप उन सेलर, कारीगरों, महिलाओं, इंडस्ट्रियलिस्ट के लिए आइडियल टूल है । एक ही छत के नीचे यानि इसी प्लेटफार्म पर प्रोडक्ट सेलिंग (बिक्री), पर्चेसिंग (खरीद), बिज़नेस डेवलोपमेन्ट, टेक्नोलॉजी डेवलोपमेन्ट सभी यहाँ सीख सकते हैं । इसके लिए केवल आपको ऑनलाइन रजिस्ट्रेशन करवाना होगा । एन एस आई सी आपको वेब स्टोर डेवलप करने के लिए हर तरह की मदद करेगा । आपके प्रोडक्ट को डिस्प्ले करने के लिए अलग अलग जगह देगा । हम पैसे और प्रोडक्ट का गलत इस्तेमाल होने से बचाने के लिए कैश ऑन डिलीवरी पर अधिक ध्यान देते हैं जिससे पैसा सीधा सेलर के पास पहुंचे “।

अभी तक सैंकड़ो सप्लायर्स अपने हज़ारों प्रोडक्टके साथ बोर्ड पर आ चुके हैं, अच्छी मार्केटिंग और प्रमोशन के बाद एमएसएमई (MSME) एक बढ़िया ऑप्शन बनकर सामने आया है । यह उन रिटेलर को अट्रैक्ट (आकर्षित) करेगा जो पहले ही दुसरे ecommers प्लेटफार्म पर अपना प्रोडक्ट बेच रहे हैं ।

The economic growth of India has been slumping in recent times thanks to the jolts of GST and demonetization. The lower strata of the economy (the bottom of the pyramid) continues to play an important role in the GDP, no matter in which form or shape it might be. With 200 million MSMEs out there with an active need for credit³ and a lot more unmet credit demand from individuals, the microfinance institutions (MFIs) are addressing this gap. Hence it is little wonder that the regulated MFIs in India (more than 70 million in number with 10,553 branches and 80,097 employees) are serving 30 million clients². The government has also recognized the importance of MFIs to the economy. Hence in 2015, the Micro Units Development & Refinance Agency Limited (MUDRA) and Pradhan Mantri MUDRA Yojana (PMMY) came into being with an impressive target of INR 1,22,188 crore³.

Due to the immense importance of MFIs we at Prest Loans- www.prestloans.com thought to put together an analysis of the trends that will govern industrial microfinance.

Trends in industrial microfinance

1)      MFIs to assume the powers of traditional banking institutions- The government and the regulatory bodies have already realized the importance of empowering MFIs to meet the credit demand of the nation. It is understood that if the MFIs can utilize the power of public deposits (which it can’t do in normal circumstances) it can lower its own interest rates and become more competitive (current rates are around 24-26%³). Hence, the times to come will see more MFIs doubling as small finance banks which will be interesting since the big players will definitely have more competition.

2)      Enhanced use of technology- MFI have to keep transaction costs low in order to be profitable. MFIs are also known to ‘try out’ a smaller loan with clients to determine their credit-worthiness before committing to the full amount. These kind of maneuvers are best done using technology. Technology can indeed help MFIs speed up the credit-disbursal process and keep the occurrences of fraudulent activity under check. With digital payments catching the fancy of the nation, customers can be engaged in better ways by employing technology. This is a huge trend for MFIs which is why MFI-NBFCs are using technology similar to other business loans NBFCs like PrestLoans (www.prestloans.com) to up their lending game.

3)      Diversification will be important- MFIs cater to semi-urban and rural areas where their clientele is generally concentrated in a particular community. This exposes them to all the risks of calamities, both natural and political, that can befall the respective community (small groups of people in rural areas are generally easier to incite for some vested political interest). The best way to reduce this “concentration risk” is to diversify the portfolio (technology can help with this as well). This diversification can be geographic or even demographic, within the same geography.

4)      Standardization of transactions- MFIs have traditionally opted for cash-only transactions. With the mandate of Aadhar linking it is more important than ever to record all transactions and execute them over electronic mediums or with due receipts.  This wave of standardization is an important trend and MFIs adhering to this will stand to be greatly benefited. The government of Andhra Pradesh was among one of the first states that regulated the microfinance industry. This trend is expected to continue and permeate across all states and union territories.

5)      Growth of niche skills in the MFI sector- MFIs used to be run by small teams with strong roots in the community, who would have strong interpersonal skills and just the necessary finance skills. But that is changing fast. With the growing need for microfinance coupled with the challenging market scenarios, MFIs will be needing to hire talent for specific skill-sets. It will not be farfetched to see MFI hiring head of finance, technical architects, experience officers and credit officers in the future (and some of them are already doing it!).

MFI lending is already witnessing impressive growth with a compound annual growth rate (CAGR) of approximately 34% in loans disbursed¹. This growth will sustain and improve for those MFIs that are willing to respond to the call of the markets in the form of the above trends. As a NBFC, PrestLoans (www.prestloans.com) is always innovating its products and services to better serve the growing credit demand. With our experience expertise in employing technology to automate processes, we are confident of being a NBFC that ushers in the new era of industrial microfinance.

Sources

1:   Sa-Dhan. (2016). The Bharat Microfinance Report 2016. Retrieved from http://indiamicrofinance.com/2017-2016-bharat-report.html

2:  ADBI. (2016). The status of financial inclusion, regulation, and education in India. Retrieved from https://www.adb.org/publications/status-financial-inclusion-regulation-and-education-india

3: https://www.pwc.in/assets/pdfs/publications/2016/shifting-trends-in-the-microfinance-ecosystem.pdf