How New Digital and Microlending Models Are Changing the Finance Game for MSMEs

Getting a loan approved from the bank under the traditional banking system for an individual or small business is an exhausting process that takes time ranging from 3 to 6 weeks. This time gap has been reduced to hours and minutes in some cases by the innovative models of digital lending. Banks and other financial institutions are now offering small credit facilities, either online or directly via their smartphones, to individuals and MSMEs. The use of banking services from smartphones is exponentially increasing. There is a simultaneous increase in the use of the applications providing digital credit facilities and the number of applications providing the said services as well.

Digital lending services majorly work on the basis of the following models:

1. Online Lending

Total end-to-end digital lending products are offered by these lenders, either online or via mobile applications. Under this model, cus ...

To continue reading, sign up for MEDICI Inner Circle and get free access for 7 days.
100,000+ FinTech professionals trust MEDICI Inner Circle to stay up to date on the latest in financial services.