How Aasaan Credits is helping MSMEs - A story of Subhash

Micro, Small and medium size enterprises base in India is the second largest in the world. This sector has emerged dynamically over last decade. Uttar Pradesh has a largest share of MSMEs about 14% of the total MSMEs in India. MSME sector is producing more than 7000 kind of products ranging from household to hi-tech products. One of the biggest reasons of the growth of MSME sector in India is the reach of consumers to MSMEs via online channels like Amazon and Flipkart. The 5 trillion economy of India depends on the growth of MSME sector when they get sufficient help from government as well as private sectors.

We have one such success story of Subhash, a Micro enterprise mattress manufacturer in Ghaziabad. A 27-year-old business owner has started his business 4 years back in a rented space with a worker and one mattress sewing machine. The opportunity to sell online directly to the customers through Amazon and Flipkart has increased his sales to 60Lacs this year a 6 times growth from previous year.

The only constraint for Subhash was the business operating cost to meet the growing demands. Subhash applied for a General business loan to banks and private lenders. These small business loans are unsecured in the nature and banks generally look for financial documents, credit history, ownership of the business premises etc. and private lenders charge high interest rates. Subhash was not able to produce enough documents like ITR, GST returns to the banks neither he wanted to pay high interest rates to the private lenders.

His introduction to Aasaan Credits was through his friend who was also the DSA for our company. Aasaan Credits is into unsecured business and personal lending to MSMEs and Salaried. Subhash got the loan of 1.5 Lacs within 4 days on the basis of his current business activity. These 1.5 Lacs helped him to purchase more raw materials and an extra unit of sewing machine. Our policies are meant to help micro, small and medium enterprises with their daily money needs to run their business smoothly.

There are more such stories like Subhash where Aasaan Credits helped small business owners to borrow money from a proper and legitimate financial channel. This borrowed money increases their credibility to take more loans in the future with any bank or private lenders. Once they build their repayment history, they become the priority for any lender. Our main focus is to bridge the gap between an access to financial capital and under-served MSME businesses. Our credit assessment methodology includes first time borrowers, borrowers with no income tax or GST returns and the people with no credit history.