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Small loans, big stakes: Why MSMEs are banking on fintech lenders

Speed and flexibility to cater to a wider segment of small borrowers are tilting market in their favour

msme, jobs, workers, supply chain, industy, manufacturing, production, business, small, women, gender, female, workforce, labour force

What’s helping new-age lenders outdo the informal model is the use of technology that makes their product efficient in terms of underwriting and yields to scalability

Hamsini Karthik Mumbai
A few weeks ago, Deepak Abbot, co-founder of, related this story. It was Saturday night and certain payouts had to be made, but his bank was under maintenance that night for eight hours. The 24-hour restriction imposed by the bank to add beneficiary accounts didn’t permit him to use his personal funds to make the payout. That’s when Razorpay, a fintech-based lender, pitched in.

“I pinged @harshilmathur (the link to co-founder and CEO, Razorpay) at 10:30pm and asked for help. I requested him to add Rs 5 lakh to our account,” Abbot recalled, adding that he knew it would

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First Published: Feb 17 2021 | 6:10 AM IST

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