Credit and Finance for MSMEs: Digital payments startup for merchants BharatPe is gearing up for loan disbursals ahead of festive season as it expects MSMEs revival soon.
Credit and Finance for MSMEs: Digital payments startup for merchants BharatPe is gearing up for loan disbursals ahead of festive season as it expects MSMEs revival soon. The company has already disbursed loans to the tune of Rs 150 crore in the ongoing quarter with the help of its partners and with this, it has become the top fintech lender for merchants in the pandemic, it said. “Small and medium-sized retail businesses are bouncing back and prepping for the festive season ahead. BharatPe is leading from the front and helping the merchant community with much needed access to credit,” Nishit Sharma, Chief Revenue Officer, BharatPe said in a statement on Thursday. In September alone, BharatPe has recorded over Rs 80 crore in disbursement and it targets disbursing Rs 1,000 crore in the rest of the FY21. BharatPe has plans to ramp up the loans disbursal figure by seven times this year.
“At a time when collateral-free business loans are difficult to avail from other financial institutions, BharatPe’s success in lending has been fuelled by its sachet-sized daily repayment mechanism that it enables through its UPI QR codes,” it said. Via this, existing merchants can avail collateral-free loans of up to Rs 7 lakhs at low interest rates and with minimal paperwork from the company. Further, the company’s newly launched BharatLoan product has also been gaining traction in the merchant community. With the new lending product, BharatPe is giving creditworthy merchants loans via a 100% digital and automated process. With BharatLoan, merchants also have the option to go for a hybrid repayment model. This model includes a combination of daily QR/POS collection and weekly payments made directly from the bank account.
In the meanwhile, BharatPe is also focusing on launching new products for merchants with an aim to help their business grow. The company currently allows loans in the range of Rs 20,000 to Rs 7 lakhs for up to 15 months tenure. The merchants can repay the loan in the form of small daily or weekly instalments.