The Micro, Small, and Medium Enterprises (MSMEs) sector has emerged as the cornerstone of the global economy, accounting for 70% of total employment. According to an IFC report, 63 million Indian MSMEs contribute 30% of the GDP and provide jobs to 110 million people. Despite this, MSMEs often struggle with credit due to limited credit […]
Managing Loan Delinquency: Wake-Up Call for MFI Lenders
Did you know that rising loan delinquency rates can lead to significant opportunity costs and damage the reputation of Microfinance Institutions (MFIs)? According to a recent Business Standard report, non-banking financial companies (NBFCs) focusing on microfinance may face higher credit costs due to increasing loan delinquencies. In addition, the asset growth of these companies is […]
The Digital Lending Revolution: Startups vs. Big Banks
Despite their best efforts, established banks often suffer from manual approaches and outdated processes. Vis-a-vis modern customer expectations of a quick approval time and flexible digital lending, these barriers usually force borrowers to seek alternate solutions. Fintech startups and lending businesses aim to close this exact gap. But the question is, how well-stacked are the […]
Future of P2P Lending and Its Direct Impact on Loan Origination Systems
Peer-to-peer (P2P) lending became a global phenomenon after the 2008 financial crash, emerging as a reliable alternative to traditional financial institutions including banks. While P2P lending businesses started entering the Indian market in 2014, it wasn’t until 2017 when the Reserve Bank of India (RBI) issued guidelines suggesting that all P2P service providers must be […]
How Does Micro Loan Management Software Improve Lenders Profitability?
According to experts, microfinancing has been one of the most instrumental factors in facilitating financial inclusion in India. The Bharat Microfinance Report by Sa-dhan highlights that 98% of microfinance institution (MFI) borrowers are women, demonstrating the significant role MFIs play in empowering women entrepreneurs through micro-credits. This impact is further underscored by data from the […]
Why Coding Matters in Loan Management System Development
Coding is an integral part of many everyday transactions and interactions for most people. It powers activities ranging from making payments on E-commerce sites, booking a cab, or using Bluetooth in the car. As per an IBM Institute for Business Value report, 92% of executives agreed that their organisation’s workflows would be digitised and use […]