Poonawalla Fincorp Launches Digital-First Business Loan Product for MSMEs

Entrepreneur

a day ago

The company aims to simplify credit access for MSMEs through a straight through processing (STP) model, eliminating the need for branch visits
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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.