Happy Loans, Mswipe eye Rs.750Cr MSME loan disbursal by FY 2020

New Delhi: Mswipe, an independent merchant acquirer, in partnership with Happy Loans, a mass-market digital lender, announced that they have disbursed over 12,000 loans to micro, small and medium enterprises (MSMEs) in the last 15 months, through a 100 per cent digital lending process, with an average loan value of Rs 31000.

Together, they aim to disburse loans worth Rs 750 crore to MSMEs on the Mswipe platform by FY20.

Happy Loans evaluates merchants on over 100 variables before sanctioning the loans. The two primary criteria being the Mswipe Risk Score, a score generated based on analysis of transaction patterns of merchants on Mswipe’s terminals and the Mswipe Merchant Profile, which leverages artificial intelligence and machine learning to generate a detailed merchant profile.

The company provides merchant-friendly payback options – merchants can opt for split settlement on everyday basis (fixed daily deduction of loan installment from the payments accepted through the Mswipe terminal).

Most of these merchants hold no previous credit record with the credit bureau, making it difficult for them to secure formal loans from banks and other financial institutions.

The partnership enables them to get a first-time formal loan and CIBIL record established. Almost 50 per cent of these merchants hail from Tier II and III cities. Some of the cities where loans have been disbursed include Nagpur, Bhilai, Lucknow and Solapur.

“Of the 25 – 30 million small enterprises in India, the vast majority are just beginning to establish a digital profile. At Mswipe we are passionate about creating digital solutions that can help small merchants grow their business and their families’ well-being,” said Manish Patel, Founder and CEO, Mswipe.

“At Happy, we are focused to help small merchants and retailers who may not have an exposure to mainstream banking.

With 38 million SME’s in India, we are betting on the underserved sector. Very few players are passionate about digital innovation and Mswipe has been the perfect match for our vision to create digital banking solutions for the mass-market,” added Manish Khera, Founder and CEO, Happy Loans.