Looking beyond big banks: why India’s SME community needs secure, alternative lending platforms
Even before the coronavirus devastated the economies of many countries, India in particular suffered a spate of fraud to its banking sector that resulted in the collapse of some of the largest players in the space. In the first half of this year alone, there have been 42 cases of bank fraud reported to India’s Central Bureau of Investigation.
With the country’s financial infrastructure already under immense strain – Goldman Sachs estimated a 45% economic decline between April to June – the onset of a global pandemic brought wide-ranging and unprecedented stress to many companies. Among these, SMEs have been hit the hardest.
With the traditional line of credit from big banks a risky option as more continue to go under, or succumb to fraud – just the other week, it was found that cases of fraud at two banks totalled 100crore – small businesses needing cash, are looking for alternative routes to liquidity.