SME WORLD Bureau
For MSMEs, the lending process has been stringent one and more often than not, uneasy to follow. TAB Capital Limited, the leading NBFC, has created a simple digital lending process where a customer can easily apply for a loan & track his/her loan application process online. The entire process is seamless, paperless, digital and automated.
Tab Capital in its unique endeavors seeks to provide disbursement to the customer within just 2 working days.
As Digital lending continues to grow; attracting entrepreneurs, institutions, professionals, the new lending mechanism is turning into a growing source for getting a financial assistance in the shortest span of time. Any growing sector can attract service providers, but digital lending will be one of the biggest innovations in lending sphere, because of its easy, simplified and quick application process. Digital lending NBFCs are providing a vital financing source for the un-served market of India. As the digital lending NBFCs are low on their operational cost, they are able to provide cost effective loans to the customers.
In this competitive world, it is need of an hour to adapt with the changing consumer environment and turn the “THE VIRTUAL AUDIENCE INTO REAL AUDIENCE”.
The new generation of consumers now expects the things to be found and delivered immediately. As per the recent study conducted by Google –BCG, it was revealed that with the increase in use of Smart phones Indian consumers, are 90% as likely, to use digital payments for both online as well as offline transactions. Over 60% of digital payments value will be contributed by offline points of sale such as unorganized retail, eateries, transport etc. This change in consumer preference has opened a new door to digital lending NBFC.
“We at TAB Capital believe to position the loan application and disbursement process to a whole new level by making your financing needs just a click away”- says Abhay Bhutada, Chairman and Managing Director, Tab Capital Limited.
Unlike Traditional Lenders, Tab Capital is an Online Lending Platform that leverages technology to provide solutions to the financing needs of Professionals and MSME Segment. Their Centralised Processing Center provides greater efficiency to the consumers while providing better Risk Management to the Company as it entails direct involvement of Directors in credit decision making.
Tab Capital Ltd is a Public Limited Non Deposit taking NBFC registered with Reserve Bank of India which started its operations in March, 2016. Due to the unique Model, Branchless Banking and less operational cost Tab Capital is one of the first NBFCs which is in profit from the first year of operation itself. The business model of TAB Capital is unique evolved after years of research & experience of promoters/Directors of Company, this unique model provides an edge to TAB Capital over its Competitors. The concept of the model is unique & thereby would be difficult to be imitated.
Digital lending is the new futuristic approach towards banking wherein the lending process is completely based upon digital modes spread across various channels of communication and devices.
This process transforms the inefficient and lengthy loan processes into a completely digital solution which is paperless and hence fast, customer-centric and hence beneficial to the borrower and easy since it is automated and streamlined.
Simple Steps towards Lending
According to Abhay, Digital lending will make each channel to function in sync with other. Customers expect that each arm of lending works seamlessly with other so that they don't have to fill same data repeatedly. The major focus for lenders should be to improve in this domain. He adds, “yesterday's MSMEs Segments have become today's large corporate. So why not provide an effortless, seamless lending platform for them.”
Digital lending platforms believe that authenticity and accuracy of data are of extreme importance. Hence, in scenarios wherein MSMEs may not have audited financial statements, additional documents such as bank statements, invoices and tax returns are requested for and used for analyzing the borrower's repayment capability.
TAB Capital created simple steps you need to follow for getting the Finance :
? Fill the Online Application
? Upload the Documents Online
? Get Disbursement in 2 Working Days
Due to the easy and fast online module there is huge inflow of loan applications from various parts of the country which helps in filtering the best of best applications. “At TAB Capital we focus on certain basic and important factors which are imperative in providing the basic approval instead of getting into the hassles of lengthy paper work. Tab Capital analyses the credit worthiness of a business by understanding the profile of the customer, cash flows, business model, social behavior and personal discussion with the customer.”
Unlike other lenders who focus on getting collateral security and profit, Tab Capital have made the lending process online with efficient work ethics and the company has maintained record of zero NPA from the day of incorporation.
Says Abhay, “Biggest Challenge which we faced was identifying the right team especially because we served those who were not being served before.” The Company truly believes that employees are greatest assets of an organisation. Having recruited workforce of experienced professionals from different segments they continue to assist in the business expansions and growth.
With new financial year, the team remains dedicated to fulfill the needs of unserved segment of MSMEs and professionals. The advisory Board of the Company comprises of eminent Banking professionals having expertise and proficient skills in the field of Banking and Finance. The committee acts as a guiding force for company and helps in designing various strategies of the business.
The Board of Directors of Tab Capital has sufficient experience in wide ambit of fields including Fund Mobilization, Corporate Funding, Project Finance, Debt Syndication, Credit Appraisal and Management Consultancy. Amar Deshpande, CEO & Director, TAB Capital, was Awarded as 'Most Influential CFO's of India' by Chartered Institute of Management Accountants.
According to Abhay, The Union Budget 2017 has a number of positives for our economy going Cashless and moving towards digital payment. “Union Budget 2017 was one of the most progressive budget in the recent times, with the focus on digital lending to cover unserved market was a great step. The recent great move by the government is a scheme to enhance credit guarantee scheme up to Rs. 2 crore for MSMEs.”
“Governments move to encourage SIDBI to refinance credit institutions which provide unsecured loans to retailers/ merchants will benefit the financial institutions operating in the unsecured credit business.
“The MSME sector in India faces many challenges and most of them originate from the basic issue of inadequate and insufficient availability of finance at an affordable cost. For this TAB Capital believes that it is essential for MSMEs to obtain finance at their early stages of growth by the lenders in order to equip them for the growth needs of their business.”
The MSME sector of India is today at the doorstep of global growth on the strength of competitive and quality product range. The MSME sector has often been termed as the 'engine of growth' for developing economies. So to help the economy at large it is essential to provide the MSMEs with the resources where they lack.
It is very important to empower the MSME sector to utilise the limited resources of finance they have in an optimum manner. The MSMEs need to be educated and informed of the latest developments taking place in the financial market.
For MSMEs, Tab Capital provides easy solutions. They can easily apply using our digital platform for the application process. Financial technology has been one sector which will be major game changer if our financial companies can adopt according to digital technology for finance.
How digital lending can improve the lending for MSME
Faster and Minimum Documentation: Fintech companies are adopting modern technologies to reduce the number of documents needed for loan.
Disbursement within two working days: So that SMEs don't miss out on the opportunity on profit TAB Capital Ltd will do disbursement within two working days.
Customized products for MSMEs: Products which are suited to the needs of diversified MSME sector. The company is currently providing loan products like Equipment / Machinery Loan, Merchant Cash Advance against POS Machine Transactions, Working Capital Finance and General Purpose Business Loans to serve various capital requirement of such MSME segment. The company is always on a hunt to design new products, so to cater the diversified.
Unlike a traditional banks/ lenders, who rely on collateral security & financial ratios, TAB Capital analyses the credit worthiness of a business by understanding the profile of the customer, cash flow ,business model, social behaviour and personal discussion with the Promoter. Loan size ranges between Rs 2 Lacs to Rs 1 crore, with an average loan size being around Rs.10 Lakh.
Loan Products :
1. Loan for Professionals
2. Business Loan for MSME
3. Working Capital Term Loan
4. Merchant Cash Advance
5. Machinery/Equipment Loan
TAB Capital intends to become a leading Digital Lending NBFC in the MSME segment. Company plans to achieve an AUM of Rs. 1000 Crores by the end of 5 years of operation. For the achievement of the said goal, the management is working upon each and every factor which contributes towards the achievement of this goal. The various factors which the Company is working upon are Creation of extensive product line, Strong Geographical & Digital Presence & a strong capital Base. Company is looking to raise equity of Rs 100- 150 Crores over a period of next 2 years. The equity infusion will be used for strengthening its data science capabilities & enhancing its technology platform.
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