Revolutionizing MSME Financing: How Namaste Credits AI-Driven Platform Aids Banks and SMEs
India's leading AI-based credit discovery and underwriting platform, Namaste Credits (), is transforming the process of loan disbursement for micro, small, and medium enterprises (MSMEs). By leveraging advanced artificial intelligence, this platform streamlines underwriting processes, enabling banks to provide easier credit to SMEs in a matter of hours rather than days. Let's delve into how Namaste Credits is revolutionizing the finance industry and the benefits it brings to both banks and SMEs.
Automating Credit Underwriting with Namaste Credits
Namaste Credits' Intelligent Credit Assessment Model (iCAM) platform automates the underwriting of loans, reducing the time and complexity associated with traditional credit assessment methods. As of now, over 80 banks have adopted this platform, leading to the disbursal of Rs 1,700 crore in loans to MSMEs. This platform significantly enhances the efficiency and effectiveness of credit analysis, allowing lenders to make better, more informed decisions about loan disbursement.
Key Features of Namaste Credits iCAM Platform
The iCAM platform seamlessly integrates with bank systems via standardized APIs, enabling a smooth and efficient process. Its core modules enhance the scope, speed, and quality of credit analytics for lenders. The platform combines digital data streams with data extracted from analog and digital documents using a proprietary OCR engine. This ensures that all relevant information is accurately captured and analyzed.
Data is then cleansed and analyzed using several purpose-trained AI algorithms and customized NLP libraries. This process results in actionable metrics and insights for business credit and risk systems teams. By leveraging these advanced tools, Namaste Credits provides lenders with a comprehensive understanding of borrower risk, enabling them to make more accurate and timely loan decisions.
Faster Loan Disbursement and Greater Accessibility
The iCAM platform facilitates faster loan disbursement, bringing the entire underwriting process down to under two hours. Traditionally, it can take banking institutions up to five days to provide any credit to SMEs. This significant improvement not only expedites the process but also increases accessibility to finance for a broader range of MSMEs.
A key statistic from the Reserve Bank of India (RBI) highlights the current state of MSME financing in India. In 2018-19, gross bank credit grew by 61.5 percent, but MSMEs still only constituted 0.6 percent of the total new credit given by Indian banks. This stark disparity underscores the need for solutions like Namaste Credits, which are essential for reaching a wider customer base and promoting wealth creation across all associated partners.
Benefits for Banks and SMEs
For banks, Namaste Credits offers a scalable solution to reach a larger segment of MSMEs. By leveraging the platform, banks can more effectively underwrite loans, reducing risks and streamlining their operations. This not only improves their efficiency but also allows them to grow their loan portfolios, ultimately contributing to the country's economic growth.
For SMEs, Namaste Credits provides immediate access to the capital they need for growth and expansion. This rapid disbursement of funds can help SMEs overcome financial bottlenecks, invest in new opportunities, and stay competitive in their respective markets. By offering quicker, more reliable credit, Namaste Credits empowers SMEs to drive innovation and drive the sustainable growth of the economy.
Conclusion
As the Indian economy continues to evolve, the need for efficient and accessible credit solutions for MSMEs becomes increasingly crucial. Namaste Credits' AI-driven credit underwriting platform is at the forefront of this transformation, providing a powerful tool for banks and SMEs to work together effectively and drive economic growth. With its innovative approach and proven success, Namaste Credits is poised to play a vital role in shaping the future of MSME financing in India.