MSME Digital Lending Platform
A mobile-first digital lending platform that enables India’s micro and small businesses to access fast, collateral-free credit using cash-flow–based underwriting and Account Aggregator data.
At a Glance
Setting the stage
Market & Ecosystem:
India’s MSME sector comprises over 60 million businesses and contributes nearly one-third of the country’s GDP. Despite this, a large percentage of micro and small enterprises remain underserved by formal credit institutions.
Traditional banks rely heavily on collateral, audited financials, and manual underwriting processes, making it difficult for small businesses—especially in Tier 2 and Tier 3 cities—to access timely working capital.
This results in long approval cycles, high rejection rates, and a significant credit gap for otherwise viable businesses with stable cash flows.
The challenge we faced
User Pain & system failure.
Most MSMEs struggle to access short-term working capital when they need it most.
Loan applications often require extensive documentation, physical branch visits, and collateral—leading to approval timelines of 30–60 days and rejection rates exceeding 60–70%.
As a result, many small businesses either delay growth opportunities or turn to informal lenders with high interest rates and unfavorable terms.
Success metrics
Our approach
The core strategy was to shift lending decisions from asset-based eligibility to cash-flow–based risk assessment.
We focused on three principles:
1. Reduce friction by eliminating manual documentation wherever possible.
2. Increase trust through transparent pricing, clear eligibility signals, and RBI-regulated data access.
3. Design for accessibility by prioritizing mobile-first flows and simple financial language.
This approach allowed us to expand credit access while maintaining responsible risk controls.
What we built
We built a fully digital lending platform that enables MSMEs to apply for and receive collateral-free loans in minutes rather than weeks.
By leveraging Account Aggregator–based data sharing and cash-flow–driven credit assessment, the platform evaluates real business performance instead of relying solely on traditional credit scores or asset ownership.
The end-to-end journey—from onboarding and consent to approval, disbursal, and repayment—is optimized for mobile usage and first-time formal credit borrowers.
Measured outcomes
Featured designs
Alternative Credit Assessment
The platform evaluates borrower eligibility using cash-flow strength, transaction consistency, and digital behavior—enabling credit decisions without relying solely on traditional CIBIL scores.
Digital KYC & Identity Verification
Borrowers complete Aadhaar and PAN verification digitally through government-backed services, eliminating manual paperwork and reducing onboarding friction.
Loan Amount & Tenure Selection
Users choose loan tenure and repayment schedules with real-time EMI calculations and affordability recommendations based on monthly income.
Lender Offer Comparison
Approved borrowers receive multiple lender offers with transparent interest rates, EMIs, and total cost—empowering informed decision-making without hidden fees.
EMI Schedule & Loan Management
The post-disbursal dashboard provides clear visibility into repayment schedules, upcoming EMIs, and loan progress—reducing defaults through better financial planning.
What we learned
- •One key learning was that speed alone does not build trust in lending products—clarity and predictability matter just as much.
- •We observed that MSME users were more confident when they understood why they were approved or rejected, even if the outcome was not favorable.
- •Another insight was that cash-flow visibility provided a more accurate picture of business health than traditional proxies, especially for informal or semi-formal enterprises.
- •Finally, designing for regulatory infrastructure like account aggregators early helped reduce both compliance risk and future integration complexity.