BharatPe not only leads aid to MSMEs but also pioneers a unique repayment scheme

Micro, Small, and Medium Enterprises (MSMEs) are thefoundations on which the Indian economy is based. Providing livelihood viabusiness or job to countless Indians, especially in smaller cities andvillages, the MSMEs contribute about 45% of the manufacturing output, 40% ofthe exports and 8% to the country’s Gross Domestic Product (GDP).

The pandemic COVID-19 has struck at the roots of consumptionand livelihoods. Except a few sectors and industries, all are in arecession-like state. Private businesses are the hardest hit. And so are the currentand upcoming MSMEs.

 To compound the difficulties, banks and especially thepublic banks, are saddled with mountains of Non-Performing Assets (NPA) which understandablydoes not make them too willing to go out of their way to offer loans toaspiring MSMEs. The banks can always ask for collateral, but if the entrepreneurwas already that well-off, they may not have required the loan in the firstplace.

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Answering to these needs, privately-backed financial andtechnology companies like BharatPe are coming forward to help finance MSMEs.The company has also left behind its competitors by having loaned out Rs 150crore in the current quarter, of which Rs 80 crore was in the month of Septemberonly. Not the one to sit on its laurels, the company has announced its aim to disburseRs 1000 crore till the end of financial year 2021.

Lender-friendly measure like no requirements of anycollateral helps aspirants at the bottom of the financial hierarchy. Also, a new product ‘BharatLoan’ has nohuman contact for creditworthy businesses with a fully automated digitalprocess allowing for a faster fulfillment of finance needs. The pioneeringtechnique by the company is the option of bite-sized daily repayment of theloan. In addition to these daily payments, a larger-sized weekly payment canalso be made.

 The company serves across 35 cities and serves over 50 lakhmerchants. The company is funded by private venture capitalists namely Amplo, InsightPartners, Beenext, Sequoia, Ribbit Capital, Coatue, and Steadview Capital Management.