Fin-tech companies must test loan books, need NBFCs for scale

ICRA says credit to MSMEs will grow at 12% annually over the next 5 years

Micro, small and medium enterprises (MSMEs) today have over 100 alternative lending platforms and aggregators to choose from for availing business loans. But while the service offered is convenient, tech-enabled, efficient and flexible, experts say these lending models have not been time-tested and fin-tech companies need to partner with the legacy-large non-banking financial companies (NBFC) in order to scale up quickly and realise profits for their investors. 

Several players have emerged over the past few years, from core lending platforms like Happy Loans, Capital Float, and Ziploan, to aggregators like Indifi, KredX and Biz2Credit, and peer-to-peer platforms like Faircent and