How Fintechs Help in Fast Finance Access

June 4, 2024
Updated on

Financial success isn’t a matter of luck, it’s a matter of planning. Part of good planning, when it comes to running a business, is about putting things in motion, so that you can keep working without intervention.

Fintech (Financial Technology) can enable you to access finance for your business and save time. With the advent of smartphones, digital banking, and apps, access to finance is on your fingertips. Fintech helps businesses and their clientele have better control over their financial activities, processes and systems.

Fintech’s rapid growth calls for an increased focus on financial education. Even though fintech reduces the barriers to capital, the fundamental risks and organisational constraints remain the same for micro-small-and-medium enterprises (MSMEs). As a result, SMEs must enhance their efficiency and become financially literate to avail of the benefits of Fintech for small businesses.

Fintech for Small Businesses: Why is it needed?

  • Fintech-enabled NBFCs are making it easier for MSMEs to access formal and personalised credit products.
  • Many small businesses don’t understand how to obtain structured financial information. Tech-focused strategy has been implemented by NBFCs to overcome this stumbling block by providing automated financial products, such as digital loans.
  • There is no need to submit physical documents; fintech companies will take pictures or can verify your information online
  • Fintech works to ensure that the clients’ financial needs are addressed in the quickest and most cost-effective way possible.
  • Fintechs look beyond just your credit score and evaluate other parameters to assess if you are eligible for a loan.

Grow your MSME with collateral-free business loans

How can Fintechs help Small Businesses?

Fintechs provide several benefits for small businesses, including:

  • Both short- and long term-loans are disbursed almost immediately.
  • Most loans offered by Fintechs-enabled NBFCs have competitive interest rates.
  • Processes for loan application and disbursement have been simplified and made more effective by using Fintech for small businesses.
  • Fintech-based NBFCS use the latest technology. This includes measuring and identifying a small business’s reputation and goodwill, as well as evaluating the business for a collateral free loan.
  • New-generation NBFCs are leveraging AI (Artificial Intelligence) and data-led decisioning to enable faster processing and innovative underwriting. 

How is Technology Helping MSMEs Grow?

Technology has been accelerating the evolution and growth of MSMEs. Though multiple channels, small business entrepreneurs can now connect with customers and operate digitally and access capital. When it comes to taking a loan, technology has eliminated the need for middlemen who might take a cut out of the loan and have ulterior motives. It promotes a well-organized business structure, while also lowering prices and improving the MSME system.

Benefits of Fintechs for MSMEs

The financial services landscape in India has evolved rapidly over the past couple of decades. Where once it was only traditional banks that provided these services, now there are a host of financial service providers that can reach out to customers outside the ambit of bank services, and cater to myriad niche requirements. They also offer essential services like financing. This has led to growing financial inclusion in India.

Fintech business plans aimed at MSMEs are usually designed around delivering financial services in the most accessible and hassle-free way. Fintech for small business has transformed the lending landscape of MSMEs by ensuring that the application process is simple, collateral is not required to obtain a loan, and loan approval is sped up. These factors add up the MSMEs easily accessing business loans for the expansion of their businesses, helping them stay competitive in their respective industries.

Some fintechs are also dedicated to driving the financial inclusion of MSMEs. These impact-oriented companies ensure that more and more MSMEs come into the ambit of formal financing by making loans as easily accessible as possible. This involved making application, disbursement, and repayment extremely accessible and easy to navigate by implementing tech solutions like end-to-end digital processes and digital disbursement.

How do Fintechs Streamline Payment and Repayment for MSMEs

Fintechs implement cutting-edge tech solutions to deliver credit at the last mile. This also involves making loan disbursement and repayment extremely easy and accessible for MSMEs. Fintech payment solutions can significantly simplify loan disbursal and repayment for last-mile MSMEs. Through the implementation of digital credit delivery, fintechs can disburse the loan amount directly into the bank account of the customer through digital deposit. This makes the process quick, simple, and secure, which is very beneficial for small businesses.

Fintech payment solutions also make loan repayment easy for MSMEs by integrating with multiple payment platforms. Rather than bank transfers or in-person cash deposits, which might be difficult for MSMEs to navigate, fintechs allow them to use payment portals and digital wallets that they normally use to make EMI payments. These factors ease the repayment process rather than forcing small business owners to spend time and energy on complicated repayment processes.

Why Choose Kinara Capital?

At Kinara Capital, we are a fintech for small businesses ensuring personalised customer service. Small business owners can rely on us for a range of business loans for their expansion needs. We provide business loans for asset purchase and working capital to small business entrepreneurs across the value chain for every business need. 

Kinara can complete the loan process and disburse funds in 1 day, which is far faster than the industry average, thanks to the company’s custom risk assessment approach, flexible product terms, customer-centric processes, and supply chain integration. Kinara Capital’s loans have touched the lives of a million people and resulted in the creation of 70,000 new jobs, many of which have gone to first-time earners and women.

By providing access to capital for MSMEs and using fintech for small businesses, Kinara Capital has enabled an increase in entrepreneurs’ incomes, job creation, and has helped create sustainable businesses, leading to economic development. 


1 Are Fintech loans faster to process compared to traditional loans?

Some fintechs like Kinara Capital process loans significantly faster than traditional banks because they implement cutting-edge decisioning models like automated AI/ML-led decisioning, which can ensure disbursal in just 24 hours.

2. How can Fintech improve the efficiency of accessing financial services?

Fintechs are improving the efficiency of accessing financial services, particularly at the last mile, by implementing digital access, combined with customer service support.

3. What should I consider when using Fintech for quick finance access?

Consider doing your due diligence about the fintech lender you are planning to approach for financing, and carefully understand the terms and conditions of the loan before applying to ensure that they suit you.

4. Are there any limitations to accessing finance quickly with Fintech?

All lenders have a set of eligibility criteria for accessing their loans. If an applicant does not meet these criteria, they would be ineligible to get financing from them.

5. Can Fintech solutions be customized to suit different financial needs and timelines?

Fintechs usually have fairly flexible solutions, which can be customized to suit customer needs. However, fintechs are also governed by strict RBI guidelines, so the degree of flexibility can vary depending on the needs and timelines in question.

6. Can Fintech platforms provide financial assistance to individuals with low credit scores?

Fintechs are less reliant on traditional metrics like credit scores for credit decisioning. However, a good credit score is always beneficial in improving your chances of getting a loan.

7. What role does technology play in the speed and efficiency of Fintech transactions?

Technology plays a critical role in ensuring the speed and efficiency of fintech transactions. Digital processes speed up transactions and eliminate human errors, ensuring that fintechs are able to efficiently deliver financial services.

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