Poonawalla Fincorp Launches Digital-First Business Loan Product for MSMEs
The company aims to simplify credit access for MSMEs through a straight through processing (STP) model, eliminating the need for branch visits
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Poonawalla Fincorp Limited (PFL), a non-banking financial company under the Cyrus Poonawalla Group, has launched what it calls an industry-first digital loan offering tailored for micro, small, and medium enterprises (MSMEs). Named 'Business Loan 24/7', the product is designed to provide instant approval through a fully digital process, underpinned by an advanced risk-first assessment model.
According to a press release issued by the company, the new product aims to simplify credit access for MSMEs through a straight through processing (STP) model. This eliminates the need for branch visits or physical paperwork, enabling faster and more secure access to funding. The process uses digitized data sourced directly from platforms such as GST systems, credit bureaus, and account aggregators to evaluate creditworthiness with more nuance than conventional methods.
PFL's approach leverages India's maturing digital infrastructure to fine-tune risk analysis while maintaining a responsible credit allocation framework. The digital model integrates analytics and verification tools to streamline onboarding and reduce turnaround time—two longstanding bottlenecks in MSME financing.
Mr. Arvind Kapil, managing director and CEO of Poonawalla Fincorp, framed the launch as a response to shifting credit dynamics in the country's evolving economy. "We believe that with India's $4 trillion economy, MSMEs will be one of the most robust credit growth segments over the next 10 years, and our assumptions are based on India's strong financial infrastructure—credit bureau data, GST information, account aggregators, and strong risk analytics," he stated. "This product, which we will gradually build into the portfolio in a sensible, risk-calibrated manner, will be an industry first, and we believe it will be a very strong and convenient offering for all good-quality MSMEs."
The company is targeting enterprises in Tier I, II, and III cities, particularly those engaged in retail, services, manufacturing, and trade. By positioning Business Loan 24/7 as a scalable digital solution, PFL aims to attract what it calls the "first right of refusal" on quality MSME borrowers, especially those underserved by traditional lending mechanisms.
This launch follows PFL's earlier entry into digital lending for salaried professionals, and the company intends to use similar strategies to build momentum in the MSME segment. It expects the product to evolve over the next four to six quarters into a significant competitive differentiator.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Cricket-T20 can be US craze like yoga and Bollywood weddings
By Amlan Chakraborty (Reuters) -Indian-American businessman Sanjay Govil is convinced Twenty20 cricket can be the next big cultural import into the United States, following a trail blazed by yoga and Bollywood-style weddings. Previous investors have held similar dreams of breaking into the U.S. sports league market, only to be thwarted by the nation's obsession with baseball, basketball and American football. IT entrepreneur Govil, however, is confident that along with Microsoft's India-born CEO Satya Nadella and Silicon Valley's Anand Rajaraman and Venky Harinarayan he can embed the short, jazzy version of cricket deeply into the U.S. sporting landscape "T20 leagues are the future," Govil, who owns Washington Freedom, one of the six franchises in the Major League Cricket (MLC), told Reuters. "Like Yoga, like Bollywood weddings, things from India and it's crazy here. "People here just love Indian wedding. When we have weddings in hotels, people just stop and watch. It's a spectacle, right?" Although cricket originated in England, India is now its financial engine with a cash cow in named the Indian Premier League (IPL) T20 competition, which has a brand value of $12 billion. IPL franchises with deep pockets also own teams in leagues in England, South Africa, United Arab Emirates, West Indies and the United States. The U.S. featured in the first international cricket match, against Canada, in New York in 1844, but cricket remains very much a niche sport in the country. RAISED PROFILE The introduction of the MLC in 2023 and staging matches in last year's T20 World Cup have raised the game's profile. Cricket returning to Olympics after a gap of 128 years at the 2028 Los Angeles Games will be "another big impetus", said Govil, who was born in Canada but grew up in New Delhi before moving to the U.S. Govil, who also owns 50% stake in the Welsh Fire franchise of The Hundred tournament in England, said MLC franchises learned a lot from their interaction with IPL counterparts. "One of the IPL owners came to my house and he educated me on how to build a team," he said. The presence of India's marquee players in the MLC would have been the icing on the cake but Govil respects the Indian board's policy of not allowing its players to take part in leagues abroad. "I'm sure they have some logic behind why they're doing what they're doing, and I respect that," he said. "I have to succeed in the cards which are dealt to me." Govil knows that cricket in the U.S. cannot rely only on the Indian market or south Asian diasporas in order to be successful. "We want to grow domestic talent. We cannot just rely on international players," he said. "We also have to create our own market here, because we cannot just rely on Indian eyeballs watching our matches." "We are in this for a long haul," Govil added. "We are making a lot of investments. We all have to have our own stadiums. "Once we have like eight or nine stadiums, that's when you're going to really see cricket growing in the U.S." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
an hour ago
- CNBC
Shein seen boosting Indian manufacturing as U.S.-China trade war shakes up supply chains
Fast fashion giant Shein is reportedly set to boost its manufacturing in India with a view to bolstering its international supply chains amid the ongoing U.S.-China trade war. The Chinese-founded, Singapore-headquartered brand and Indian partner Reliance Retail are set to expand their supplier base in the South Asian country and begin international sales of India-made Shein clothes within the next six to 12 months, Reuters reported Monday, citing sources. The plans aim to increase Indian suppliers from 150 to 1,000 within a year, they added. Shein told CNBC the partnership was limited to the licensing of its brand to Reliance Retail for Indian domestic consumption only. Reliance did not immediately respond to a request for comment. According to the sources, discussions between the firms were underway ahead of fresh U.S. tariffs on China and the closure of the former's 'de minimis' trade loophole. Analysts nevertheless dubbed it a potentially savvy move given brewing trade tensions and increased scrutiny over Shein's supply chains ahead of its closely watched initial public offering. ''Shein's expansion of its production in India is on the face of it a shrewd move, given the trade headwinds facing the company," Susannah Streeter, head of money and markets at Hargreaves Lansdown, told CNBC via email. "It does look like using India as a manufacturing base is a long-term plan and the current tariff challenges could speed this up," Ed Sander, analyst at Tech Buzz China, added. Shein launched in India in 2018 but it was banned in 2020 as part of a government clampdown on Chinese firms. It returned to India in February, as part of a licensing deal with Reliance Industries, the conglomerate owned by Asia's richest person, Mukesh Ambani. The partnership is one of many Reliance has with global clothing brands including Brooks Brothers, Marks & Spencer and Diesel. Under the deal, Shein-branded clothes are produced domestically in India and sold on the website. This differs from most other Shein websites, which list products made in China. The firm nevertheless has existing manufacturing in Brazil and Turkey. An official from Reliance Retail said at the time that Shein would use India as "supply source for its global operations," according to the BBC. They added that the deal would simultaneously help Reliance in "building the network" and training Indian garment manufacturers as part of India's wider plans to promote its textile and garments export industry. "I doubt if the option of exporting elsewhere from India will be the main aim at the moment," Sander said, noting current limitations around India's factory capacity. "Having said that, this could change in the future if Reliance scales up." It comes as other companies have also been ramping up their production in India as they seek to avoid the most punitive tariffs on China. Tariffs on India are currently held at 10% while trade negotiations remain underway. "With the outcome of U.S. China trade talks still unclear, diversifying the manufacturing base to other parts of the world which could benefit from lower tariffs on exports to the U.S. looks sensible," Streeter said in emailed comments. U.S. tech giant Apple has also been boosting its production in India with a view to making around 25% of global iPhones in the country in the coming years. Those plans sparked backlash from U.S. President Donald Trump, who threatened to impose 25% tariffs on such goods. The timing is especially interesting for Shein, however, as it seeks to overcome scrutiny in its troubled pursuit of an IPO. The e-commerce behemoth reportedly recently shifted its listing from London to Hong Kong after failing to receive approval from Chinese regulators. Shein has long sought to shake allegations over the use of forced labor to produce its low-cost goods — claims it vehemently denies. Still, some raised concerns about whether India would provide the silver bullet. "India is not without risk in this respect. There have been reports of labor violations amounting to forced and child labor occurring on cotton farms supplying to three Indian textile suppliers to 60 multinational clothing brands," Streeter said. "Among responsible consumers and investors, there still may be significant skepticism about this move.'' A spokesperson for the Indian government did not immediately respond to CNBC's request for comment on the claims.
Bloomberg
2 hours ago
- Bloomberg
India's RBI to End Daily Fund Infusions Following Stance Shift
India's central bank said it will stop daily fund injections into the financial system, days after the monetary authority shifted its policy stance and said the space for future easing was constrained. The Reserve Bank of India said on Monday that it would discontinue daily variable rate repurchase auctions from June 11, almost five months after it started such operations.
