The Micro, Small, and Medium Enterprises (MSMEs) sector has emerged as the cornerstone of the global economy, powering 70% of the workforce. 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 history, […]
Unmasking Financial Fraud: How Finezza Empowers Lenders
The financial fraud scenario in India is becoming more complex with the increasing sophistication of threats. As per RBI, banking frauds shot up 166% in FY24, with over 36,000 cases reported. This represents millions in losses and countless hours spent tracking fraudulent schemes that plague the lending sector. Digital lending has transformed credit access in […]
Why Loan Delinquency is a Wake-Up Call for MFI Lenders and the Industry
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 […]
4 Ways Co-lending Can Strengthen the Indian MSME System
Did you know there are around 64 million micro, small, and medium enterprises (MSMEs) in India? Additionally, MSMEs contribute around 30% of the total GDP and account for 31% of the country’s workforce, highlighting their indispensable role in India’s economic growth in recent years. Yet, MSME credit penetration in India is only 14%, which begs […]
10 Ways Peer-to-Peer Lending is Challenging RBI’s Traditional Lending Regulations
Peer-to-peer lending (P2P lending) is disrupting the traditional financial framework, but not without raising concerns about regulatory oversight and borrower-lender protections. Unlike regulated banks, which must adhere to the strict RBI guidelines for documentation, credit assessment, and compliance, P2P platforms often operate with minimal requirements. While seemingly beneficial for quick access to funds, this relaxed […]
The Price of Unchecked Growth: RBI Governor Warns NBFCs
Today, a growing number of Non-banking Financial Companies (NBFCs) face immense pressure to drive higher returns. In the pursuit of this goal, some NBFCs are engaging in irregular practices, which can invite strict action by the Reserve Bank of India (RBI). For instance, the RBI recently imposed restrictions on four NBFCs that were charging exorbitantly […]