For a variety of reasons, most credit worthy single shop retailers in India do not want to take a loan to grow his revenues and profits, whereas a not so good retailer is hungry for loans, and other avenues to get money. Before demonetization, most good retailers prefer to deal in cash, and get cash discounts from their distributors for paying in cash at the time of delivery. These retailers do not want a hanging sword of EMIs at their head, and they want to just focus on their business. Contrary to the popular public opinion in India, not every small business need a loan, and credit is available to good businesses.
A good number of shop owners are satisfied with where they are, and they either do not aspirations to grow their business, or do not want to take a risk. We faced this issue when we at LOANMEET ( www.loanmeet.com ) went to the good shops, and they told us NO. As a company, we need to identify good shops that need a loan to grow their business, and we are able to identify a good number of them. Having said that, we wish that we can find more individuals who want to grow their business.
Most shop keepers do not trust banks, especially the tele callers who call on behalf of banks or NBFCs. They do not believe that banks and NBFCs can give them loans, and they or their friends faced rejection. These shop keepers are not aware of fintech companies, such as LOANMEET. Like other fintech companies, we underwrite loans on basis of PAN Card, and Bank Statements. We have given loans to shop keepers even if they have not filled ITR. A lot of our time is spent on convincing the shop keeper that he can get an unsecured loan, no collateral of gold, property, or fixed deposit.
Going forward, the life of shop keeper will be better with advent of fintech startups, such as LOANMEET. The banks will soon start taking additional risks, and they would give unsecured loans to retailers. Like in United States, the small businesses of our country, India, can think of becoming a billion-dollar company, and sell their products and services to the entire world.