Now everyone able to get loan upto 5 lakh rupees. Yes you’ve heard it right. Street vendors doing small business with small capital on the roadside can now promote their business by taking a loan of up to Rs 5 lakh. The special thing is that they will get this loan only with QR code. They will get this loan on a daily transaction basis. The second feature of this loan is that after taking the loan, they can also pay its installment daily. Now you must be wondering that which is the bank in the country which is distributing loans by relying so much on the street vendors? Sir, this is not a bank, but a non-bank financial company (NBFC) Muthoot Fincorp One, which is giving MSME (Micro, Small and Medium Enterprises) loans to street vendors.
Use of the app for installment payment
NBFC Muthoot Fincorp One said in a statement on Monday that it will provide a loan of Rs 5 lakh to small businesses like street vendors on a daily transaction basis. In its statement, Muthoot Fincorp One said that the company will give loans to MSMEs with a daily installment payment option, in which QR code-based apps will be used for daily transactions.
There are about 60 million informal micro enterprises in India
The company said that this loan scheme is based on the ‘New Credit Assessment Model’ for small businesses, which was announced by Finance Minister Nirmala Sitharaman in the Budget speech in Parliament on 23 July 2024. Under this model, banks have to assess small businesses on the basis of digital footprints rather than their books of accounts.
Muthoot Fincorp One CEO Chandan Khaitan said there are about 60 million informal micro enterprises (IMEs) in India. It is one of the largest employment creators in the country and contributes significantly to the country’s gross domestic product (GDP).
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