Monthly Archives: March 2018

Fintech NBFC - TAB Capital LTD

The Role Played By Fintech NBFC In Transforming MSME Finance!

According to the NASSCOM Start-up report in November 2017, India is currently the world’s 3rd largest start up ecosystem! Against the backdrop of a booming entrepreneurship atmosphere, and thousands of small businesses getting added every year in myriad different industries and sectors, the demand for Fintech NBFC or in other words MSME finance has reached new heights! The current mantra in the business finance scene? – Loans that are Faster, Easier and Affordable!

Digital Lending – The Trend

With the growth of the start-up culture, the new ventures of the MSME sector (Micro, Small and Medium Enterprise), like all businesses, need monetary support. Moreover, in today’s digital era, they need their loans to be economical and affordable, easily procurable, with fast disbursal cycles. In other words, the MSME finance scene in India is seeing a gradual shift from the traditional finance sources to the alternate digital lending sources.

Traditional Business Finance Sources – The Challenges

The 5 most common barriers that small businesses face while taking a loan from a conventional MSME finance source in India, such as banks, government agencies, etc, include:

  1. Assessment of creditworthiness of a borrower by bank officials are done by outdated methods where small businesses get stuck
  2. Loans from traditional finance institutes being secured in nature, require collateral from lenders as security, such as real estate, gold, machinery, investment portfolio, etc. Many a times this prevents small businesses to avail business finance even if they have good prospects for growth with the capacity of timely payback.
  3. Banks are plagued with complicated and complex loan procurement processes which is time consuming and cumbersome
  4. The waiting time for loan approval/disbursal are much higher in conventional banks extending up to months
  5. The interest rate to be paid for business finance from a conventional bank is much higher

An Alternate MSME finance Solution – The Success Story

Against the backdrop of immense technological advancement in recent times, the Fintech (Financial Technology) sector has seen rapid growth and is all set to cross the $2.4 billion mark by 2020 as per the NASSCOM and KPMG reports.

TAB Capital, one of the leading fintech lenders use digital technology to make lending faster, easier and less costly. Specializing in MSME finance, TAB Capital’s work is all about granting a loan against financial statements, bank account transaction history or e-commerce transaction behavior (all of which can be digitally uploaded by the applicant / borrower), within a matter of 1-2 days and at an interest rate that is much lesser than the banks. The creditworthiness of the borrower is assessed using big data along with psychometric tests and social media behavior. The trading position of the business is also taken into account.

As a conclusion it can be safely said that the emergence of the Fintech NBFC for MSME finance is a global phenomenon that is transforming the entire lending model and in turn the business sector in totality. An idea can change the world, and as fast the idea can be converted into reality, more profitable and effective it will be. Gone are the days of the waiting in line for form fill-ups and waiting months to get a loan to have your business see the light of the day. With players in the market such as TAB Capital, monetary support for your innovative business idea is just a click away!

Machinary Loan TAB Capital Ltd

5 Machinery Loan Myths and Facts that you need to know right now!

Being the world’s 3rd largest startup ecosystem, India is riding the crest of the entrepreneurship wave and driving this growth is the MSME sector (Micro, Small and Medium Enterprise Sector). Most of these businesses, of course, need some sort of machinery in their operations, be it for manufacturing or otherwise, and hence the need for machinery loan or in other words, machinery finance is of utmost importance for this sector.

What is a Machinery Loan?

Machinery Loan or Machinery Finance is a financial product that is used by MSMEs to purchase new machinery or upgrade old machinery for their production or business expansion needs.

Machinery Finance – The Myths and Facts

There exists many a myth regarding Machinery Loans that makes people believe that it is something that is difficult to get. Well, it might have been in the past but with rapid technological advancement and growth of FinTech NBFCs (Non-Banking Finance Companies) providing machinery finance, the scenario is quite different now! Machinery Loans are now Faster, Easier and much more Affordable!

So it’s time to bust those myths and look at the top 5 machinery loan facts! Here goes…

Myth 1: The best source to obtain a machinery loan is from a Traditional Banking Institutes.

Fact 1: This is a big myth. Firstly conventional banks do not want to loan out smaller amounts of machinery loans to MSMEs. Secondly, the sheer amount of documents required, many MSMEs are not able to provide and the huge amount of paperwork to be done makes the entire process extremely complex and delayed. Thirdly, the interest rates at banks are quite high which does not work for MSMEs. Hence from no angle is a bank well suited for an MSME to take a machinery loan from! NBFCs like TAB Capital which provide quick machinery finance on the basis of KYC, bank statements, etc without any collaterals and at a much lower interest rates are much better for MSMEs.

Myth 2: Machinery Loans need a lot of collaterals.

Fact 2: Big myth! If you are opting for machinery finance through a modern FinTech NBFC, you need not to provide any collateral. That myth is only true for conventional banks who are still plagued with outdated protocols when it comes to loaning money. Now Machinery loans can be obtained easily without mortgaging your additional assets or business equipment.

Myth 3: Machinery Loans take long time for approval and disbursal.

Fact 3: Again, not true at all! It might be the case in the traditional machinery finance sources but in modern FinTech machinery financers, disbursement happens in just 2 working days! No cumbersome paperwork process, no long waiting time for verification and approval, just what is required for MSMEs to get their innovative idea up and running in no time!

Myth 4: Machinery Loan amount is a low percentage of the machinery value.

Fact 4: Machinery loan amounts even go up to 90% of the machinery value so that entrepreneurs can start off and expand their business quickly and efficiently.

Myth 5: There are pre-payment charges for loan repayment.

Fact 5: Lender can repay machinery loans with their surplus whenever he/she wants. With FinTech players of the market such as TAB Capital, there are no pre-payment charges on loan pre-payment at all!

Apply for a TAB Capital Affordable, Faster and Easier Machinery Loan in 2 days.

Two wheeler loan Pune - TAB Capital

Apply online for a Two Wheeler loan and enjoy these 7 benefits!

Commuting on the busy streets of this country is a tedious task to accomplish – every single day. Be it reaching your workplace on time, or returning home at peak office hours, you are exhausted with the never-ending to and fro while on roads. Sidewalks congested with shops and pedestrians, cramped buses and rickshaws, and cab surcharges shooting up in no time, has got you angry and frustrated most times. Nevertheless, there’s nothing much that you could’ve done at that point of time. Even when you saw a bike whoosh across the road and envied the owner’s pride and comfort, you couldn’t imagine foreseeing a day where you too could travel comfortably – all by yourself, given the current state of your finances.

Well! If you are convinced by your incapability to afford a sturdy bike for your own comfort, let us reaffirm, you are NOT incapable anymore. With TAB Capital’s online digital lending platform, you can get a Two Wheeler Loan approval in minutes and evade the rigorous stint on Indian roads every day.

Two-Wheeler loans are extremely affordable and reap many benefits. Let us walk you through some of them.

  1. Lower Financial Burden – Two-wheeler loans give you the flexibility to break down your loan repayment in monthly installments that go easy on your pocket, over a longer period of time. Keep yourself stress-free, and plan your financials comfortably. You can choose to repay your two-wheeler loan from within a range of 12 to 60 months.
  2. Convenience – Two-wheelers can be maintained as per your convenience. Costs incurred are less, other than the petrol charges. Most bikes or scooters come with a decent mileage, so that too does not make you spend sky high limits on maintenance.
  3. Margin of Finance – TAB Capital offers up to 100% of a two-wheeler’s on-road price. Yes! You read it right!
  4. Credit Score – Two-wheeler loans are easy to repay in less time. So, if you want to score a higher rank in your credit report, you may opt for a two-wheeler loan and keep your credit records clean for future needs.
  5. No prepayment charges – If you wish to pay back your loans early, you shall not be charged due to prepayment or foreclosure of your loan.
  6. Affordable – With long repayment tenure and flexible monthly installments, affording a two-wheeler loan is within every individual’s scope today.
  7. Resale Value – Two-wheelers have a great resale value as compared to cars, even after a notable amount of time, So, it is up to your will, and entirely possible, to plan the purchase a brand-new vehicle just after repaying your initial loans.

The onus is on TAB Capital to make sure that you own your dream bike in minutes and lead way to newer avenues of success. So, keep aside all your worries, and apply online for TAB Capital’s Two Wheeler Loan without further ado.

It’s about time you chose comfort over your compromises!