KreditBee expands service to include digital business loans in India
KreditBee, a provider of online credit solutions in India, has decided to expand its catalogue of financial services to include digital business loans, including options for both unsecured and secured loans. The company plans to offer loans that range from Rs. 30,000 to Rs. 300,000 with repayment periods flexible between 6 and 24 months. It also has plans to increase its loan offerings to include larger loans of Rs. 5-10 lakhs.
The new service, available to self-employed individuals and small businesses, demonstrates KreditBee's commitment to enhancing financial inclusion for groups that have been traditionally underserved by the financial sector. The company will now offer collateral-free loans." KreditBee recognizes the importance of small enterprises and self-employed customers to the wider Indian economy and has tailored its loan offerings to meet their unique needs."
Under KreditBee's new scheme, businesses can acquire an unsecured loan with a ticket size of up to Rs. 1,500,000 through the in-house, RBI licensed, NBFC, KrazyBee. This loan would typically have a repayment tenure of up to three years. KreditBee is hoping to diversify its loan portfolio with this latest move, aiming for a 20-25% contribution from the business segment over the next few years. The company also plans to offer larger ticket size loans, up to Rs. 25 lakhs, with a long-term repayment term up to 10 years in the future.
KreditBee already holds a strong position in the personal loans segment, with monthly disbursements amounting to Rs. 1,500 crore in the unsecured loan sector. The company aims to mirror this success in the realm of small businesses, initially targeting enterprises in metro areas before expanding into tier-2/3 cities.
Commenting on the launch of the new product, Madhusudan Ekambaram, Co-Founder & CEO of KreditBee, stated, "Our business loan offering aims to empower a larger pool of underserved self-employed businesses, the backbone of our economy, with essential credit access... Through seamless digital processes and collateral-free loans, we aim to bridge the credit gap for underserved businesses, fostering success and contributing to India's small business sector development."
The new business loan offering boasts an entirely digital process from application to loan disbursal, coupled with competitive interest rates. It offers the convenience of applying for a loan from any location, at any time. Apart from digital loans, KreditBee's other services include online/offline checkout finance, digital gold investments, loans against property, insurance, credit score reporting, and merchant-side offers.
