You will get a loan of 10 lakh rupees in just 10 seconds, know the whole process

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Razorpay has launched ‘Cash Advance’ to provide working capital to micro and small enterprises in Corona crisis. Under this, small and small enterprises will get a loan of up to Rs 10 lakh in 10 seconds after the necessary approval. It will also have the facility of auto repair.



new Delhi. The corona virus epidemic has not only created revenue difficulties for small scale industries (MSMEs), but now their hopes of survival are also getting low. In view of this, now Razorpay has launched collateral free line of credit, named ‘Cash Advance’, to support cash flow in the MSME sector. Under Cash Advance, MSMEs can borrow from Rs 50 thousand to Rs 10 lakh depending on their needs. They will get this loan in just 10 seconds through the RazerPay dashboard. However, for this, the credit history of their business should be better.

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Working capital crisis for small enterprises
Global analytics company CRISIL has said in a report that the current epidemic has made it difficult for micro and small enterprises (Mirco & Small Enterprises) to manage even the working capital. Compared to these, large and medium scale enterprises are easier to manage their working capital.



Obstruction in taking loans under government schemes
There are about 6.3 crore MSMEs in India. Of these, 40 per cent have taken loans from formal channels such as banks and other lending institutions. 60 percent still do not have working capital available. However, the government is also providing loans to the sector under several schemes. But most MSMEs are not getting the benefit of this. Actually, loan issued with the help of government depends on collateral, size, vintage and credit history. Also, it is mandatory for businesses to qualify under MSME under these schemes. The central government has set a definition for MSME, it is necessary to fit them in order to get loans from banks.



due to not having paid up capital The growing deficit
RazerPay says that small manufacturers, e-commerce sellers and service providers need cash even before payment is received from customers. For example, an e-commerce seller has to prepare stock at short notice of order, for which they should have cash. Suppliers are not able to provide the necessary goods to the manufacturers, as they do not have enough capital. Due to this, the manufacturing process is stagnating and their losses are continuously increasing.



Cash Advance offers credit based on the merchant’s payment history. After approval, businesses can withdraw money according to their needs and when they get money, then they can collect it. The cash endowment renewal of these enterprises will be every 6 or 12 months. There will also be an option for autopayment.

Shashank Kumar, CTO and co-founder of RazerPay, said that with this service, we are helping our partners maintain cash flow. Our financing process is easy and there is no need to improve credit history of enterprises for short term.

 

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