Faircent.com Discloses Its Latest Research & Analysis Report
Faircent.com, India’s largest peer to peer lending website and NBFC that caters to retail and business loans, has released its latest Research & Analysis Report 2018 on January 17, 2019. The report disclosed that 64 percent of all loans disbursed across the online platform were to small and medium-sized businesses (SMEs). It also included both new and old enterprises that availed loans for funding expansion plans or addressing working capital requirements for day-to-day operations.
Some of the key trends in the P2P lending platform were also illustrated in this report. Due to inadequate financial records and lack of credit histories especially in Tier-2 & 3 cities, majority of the SMEs are unable to access funds from banks and financial institution, regardless of their mammoth contribution to the overall economy. The report by ICRA states that the amount of credit delivered to the MSME sector is 16 trillion for FY 2017, which is still much lower than actual unmet demand of 25 trillion for credit from the sector.
In spite of the liquidity crisis witnessed by NBFCs in extending credit to MSMEs, Faircent.com has doubled its funding to small businesses over the last year while small business poised in the Indian hinterland have tasted benefits galore. The Research & Analysis Report further presents that currently 31 percent of business funding through the platform is to SMEs from Tier-3 cities and 44 percent to those in Tier-2 cities.
Commenting on the report, Vinay Mathews, Founder & COO, Faircent.com, says, “It is impossible to deny the crucial role the alternative lending sector, and online P2P lending in particular, has played in supplying credit to MSMEs in wake of the current liquidity crisis among NBFCs. Faircent.com is committed to working consistently towards scaling up their technology and operations to reach largely underserved or unserved consumer segments across India. As our latest report states, Faircent.com has achieved great strides on this front by creating avenues for small businesses and credit-worthy consumers in Indian hinterland to avail funds in the simplest and more affordable manner.”
One of the case studies depicting the excellence of Faircent.com – Vineeta from Faizabad is a social worker and teacher with 10 years of work experience, running a training center where she conducts computer and embroidery classes for the underprivileged section. Through Faircent.com, she was able to overcome the difficulty in getting funds to establish another education center under the Uttar Pradesh Kaushal Vikas Yojana and also swiftly raised funds from lenders.
The platform has also published that loan funding was tripled to borrowers from Tier-3 cities while it was tripled to borrowers from Tier-2 cities, since the last year. Faircent.com will be foraying into the smaller towns and semi-urban areas of India where both individuals and small businesses have little or no access to organized learning.
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