Ensuring ‘Suvidha’ for Loan- Seeker: Cash Suvidha
More than accessing capital loan, entrepreneurs struggle with two elements; firstly the experience of accessing credit or loan and secondly the cost of credit. These two are the most annoying factors of availing capital. In order to bring value for the MSME entrepreneurs in these two factors, Cash Suvidha – a lending platform came into existence a couple of years ago. ‘Suvidha’ is a Hindi word for convenience. The idea behind Cash Suvidha is not just about serving the unserved market but also to create a system of strong screening yet easy and fast for ensuring quick dispersal of the loan. In an exclusive interaction with Faiz Askari of SMEStreet, Rajesh Gupta, Founder, Cash Suvidha explained his experiences and trends in the SME lending domain.
Please share your experience in setting up Cash Suvidha.
We have a real estate and infrastructure business background and we realized the need of accessing credit. So, we examined the issues and challenges that a borrower usually come across while seeking capital. Based on our observations and market dynamics we introduced Cash Suvidha which aimed at offering loans, credit support of multiple types and catering to a variety of borrowers.
Explain your company’s focus towards Entrepreneurs from the MSME domain.
Entrepreneurs from the SME and MSME segment are the most important focus area of our business operations. Among all sorts of borrowers, this segment comes across with many issues and challenges. This is the reason we decided to attract the MSMEs by offering them not just MSME loans but also loan with a better experience.
We at Cash Suvidha have prepared a set of offerings for this segment. Since inception, we have been dealing with entrepreneurship specific loans, these are allocated to even public limited companies, proprietorship firms and partnership firms. So in order to apply for a business loan at Cash Suvidha, our policies are flexible enough as we understand the exclusivity of business environment and entrepreneur’s own framework. However, in this framework, we follow quick disbursement process and flexible lending policy while providing any type of business capital to entrepreneurs.
Please highlight some of the milestones that you have achieved.
Since inception, Cash Suvidha has disbursed loans worth Rs 130 crores and has raised a total debt of $5.2 million. We have an in-built Suvidha Social Score for assessing the creditworthiness of the loan applicants.
What is Suvidha Social Score? Please explain.
Our in-house social scoring model called Suvidha Social Score is helping our internal credit team to get a better sense of borrowers which is not captured by traditional scoring algorithms. It is the combination of customer’s social media profile & professional media profile. In order to procure Suvidha Social Score borrowers will have to sync its Facebook, Twitter, Linkedin, Google account with Suvidha Social Score available at our website. It is the mixture of the social, professional & financial standing of the borrower. Our score is capable of combining e-KYC, bank statement & social score to give a collective creditworthiness of a borrower.
What are the parameters of consideration for dispersing loans?
Cash Suvidha invites you when you’re keen on handling a business even prepared for the worst as we believe in its determination. While disbursement of the amount, we are not considering the educational background of the entrepreneur, family history or previous career track – the only thing we are bothered is about entrepreneurs’ determination; focus and frequency.
What are the key attractions of Cash Suvidha?
While we discussed many important elements above, we also would like to share that company disburses loans in 48 hours. The company receives around 15,000 loan applications per month. We have maintained its break-even since the beginning of its operations. Our 80% of the loans are targeted towards SMEs
We may also look for a prospect to work together on the drafted business blueprint. We are also instrumental in inspiring the established business ventures for trendy modifications. Owing to our revolutionary idea and growth-oriented attitude, our firm has been able to set a motion for the establishment or enlargement of business projects, projected by Indian entrepreneurs.
Blessed with micro, small, medium and large-scale entrepreneurship loans, these are allocated to public limited companies, proprietorship firms and partnership firms. So as to apply for a business loan at Cash Suvidha, our policies are flexible enough. In this framework, we follow quick disbursement process and flexible lending policy while providing any type of business capital to entrepreneurs.