Hyderabad-based fintech startup CredRight Sunday announced a loan of Rs 200 crore to micro, small, and medium enterprises (MSMEs) in the next three years.
CredRight, the data-driven lending platform partners with chit funds and uses a reverse auction to distribute pooled funds across India to acquire customers and to underwrite loan for a customer, the company said in a release.
In 2019-20 fiscal, the company plans to further invest in technology and disburse Rs 50 crores to MSMEs by December 2019, it said.
"We are looking to provide loans of above Rs 5 lakh to retailers/small businesses and above Rs 10 lakh to SMEs.
In the last year, the loan band ranged from Rs 1 lakh to maximum of Rs 35 lakh with an average of Rs 9.5 lakh," Co-founder & CEO of CredRight, Neeraj Bansal noted.
"There are around 50 million registered and unregistered MSME businesses in India that face a nearly USD 300 billion credit gap.
The lack of adequate finance due to shortage of organised lending from banks and other formal institutes along with absence of transparency poses severe challenges in front of MSMEs to obtain loans," he said.
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