startups

How technology backed lending startups has changed the scenario for women entrepreneurs in rural India – ETCIO.com


By Rajiv M Ranjan

Technology has brought colossal of transformation in every sector and has simplified the process. It’s playing an instrumental role in changing the face of the startup ecosystem. In rural India, the technology backed lending startups like NBFC-P2P lending companies, are helping the women entrepreneurs to grow financially. These startups connect verified borrowers requiring a loan to registered lenders using technology, thus enabling lenders from any part to connect with borrowers in need of funds.

This is helping the women entrepreneurs in managing their family and also contributing to the economic development of the country. In rural India, the number of women entrepreneurs who are taking help from these technology-backed lending startups have increased in the recent past. Let us understand how these startups are touching the lives of these rural women.

Less or zero effort
For women entrepreneurs in rural India, these startups have facilitated convenience to the maximum. They can either visit the contact centers or call up field officers for a loan without hampering their business. Both the mediums use technology to eliminate the woes of paperwork. Additionally, the borrower can themselves use smartphone to make the job easy. The work has been simplified as filling an application form, and scanning (documents) on the phone has made it much more comfortable. On the other hand, the traditional sources of financing are time taking and cumbersome.

Fastened the work
For women entrepreneurs in rural India, which are usually small, time is often the essential criteria. The technology backed lending startups have cut through many processes leading to faster and hassle-free work. These also offer a much-enhanced consumer experience through easy access to information and products. Initiatives corresponding to digital identification of an individual have set the perfect base for digital lending with extremely convenient and quick processes. This is helpful for consumers who are in need of money on an urgent basis, like in the case of a medical emergency or for the wedding.

More trustworthy
These startups are growing at the blistering speed. They have emerged as the most reliable source of lending money as there are fewer chances of malpractice with features like biometrics, & geo-tagging. The advent of such advanced digital feature has led the NBFC-P2P lending startups to enter in this sector and help popularize rural lending as a preferred business model. Today the traditional financial institutions are collaborating with such startups to increase the spread of their loan portfolio.

High reach
Traditional financial institutions have covered every part of the country. However, there are few regions which do not have banking facilities which has led to credit deficiency in these areas. The technology backed lending startups have deeper reach enabling credit facilities to hinterlands as well. With its online & paper-less process, these startups have expanded pan India and loan disbursements through these startups is set to increase multifold in coming years.

Win-Win situation for all
The women entrepreneurs in rural India are witnessing relief by taking loan through these technology-backed lending startups and not through local money lenders. These startups, on the other hand, are enjoying the market share in this sector with a considerable margin, thus making a win-win situation for the duo. With hindsight, it can be said that technology is here to stay and empower the rural women entrepreneurs by making the lending process unprecedented like never before.

The author is Founder & Managing Director at PaisaDukan

DISCLAIMER: The views expressed are solely of the author and ETCIO.com does not necessarily subscribe to it. ETCIO.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.





READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.