SMFG India Credit and PhonePe Offer Collateral-Free Merchant Loans
Why in the news
A non-banking finance company, SMFG India Credit, joined PhonePe so small merchants can get working capital without security.
Key facts
- Product: Merchant Cash Advance (MCA) loans for registered merchants.
- Focus: small businesses in semi-urban and rural India.
- Goal: strengthen SMICC as a leading MCA lender.
About micro-merchants
- Tiny self-employed or family-run firms, often with turnover below ₹50 lakh.
- Usually 1-5 workers, working at neighbourhood level, e.g. a kirana shop or street vendor.
- The smallest segment of MSMEs.
Exam angle
- Credit type: MCA; lender category: NBFC.