How does a business loan help in business expansion?
Gone is the credit cycle that saw a hard hit on the global economy past the COVID-19 pandemic. And in this new credit cycle, SME lending can make the most economically profitable contribution to NBFCs. Since the traditional banking system somehow is unable to create the right and useful lending solutions for their SME customers, most of them are turning to NBFCs for their unmet needs. As per a report by the World Bank, the unmet finance needs of the SME sector are nearly $5.2 trillion a year.
This opens up opportunities for other financial institutions to capitalize on SME-lending opportunities. They offer faster credit decisions, reduced interest rates, customized financing solutions like purchase order financing and bill discounting coupled with seamless customer experience, and mini...