Rahul Chander, MD and CEO, LivFin gives us insights on the challenges in SME loan space and how technology addresses it.
LivFin is a tech enabled supply chain focused NBFC start-up, offering fast paced credit to the MSME segment in India. It provides tailor-made financing solutions for MSMEs. The company provides invoice-based short-term loans of 30 days to 180 days maturity to help businesses address their working capital needs.
In this video, he talks about how the digital lending model for has made it easy for businesses to apply for loan and how technology improves access to credit. One of the biggest challenges however, he says, is effectively assessing the credit risk of these business that have traditionally been dependent on cash-based models.
Availability of data and technologies like analytics and AI to process that data has addressed this problem to a large extend, he adds.
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