HAPPY, a machine learning-based MSME digital lender, has launched the 'lockdown loan'. The company came up with the initiative as it believes that the global coronavirus outbreak has also impacted about one-fourth of India’s 69 million MSMEs at present and the lending will help the affected microenterprises with seamless liquidity access.
The company said that the digital credit facility is developed to address the working capital woes of Indian micro enterprises during the lockdown period. It claimed that it will empower borrowers with easy capital access to ₹25,000 and ₹50,000 with bullet repayment after 6 months.
The ML-based lender has further strengthened the offering with Covid-19 protection insurance, wherein a full loan waiver is extended to the coronavirus infected.
The company mentioned that the pandemic has derailed the country’s economic growth that heavily depends on the MSME segment. MSMEs are considered as the backbone of the Indian economy as they contribute about 30 per cent of the Gross Domestic Product. To empathize with these critical times, HAPPY, in line with its mission and vision, has walked that extra mile to assess the pressing credit needs of Indian micro-entrepreneurs and create a meaningful impact in their lives, the company said in the official release.
The digital lending platform further said that it has proactively interacted with nearly 300 MSMEs via a survey to understand their sentiments and pain points. The Lockdown Loan was designed and developed basis the survey results to empower the micro-entrepreneurs during these difficult times.
Manish Khera, Founder & CEO, HAPPY stated in the official release: “The Covid-19 outbreak has deeply impacted the cash flow of all big and small businesses. Perhaps, the economic shockwaves have been felt the most by micro & smaller businesses and they are in urgent need of financial assistance.”
He noted that his customers are the lifeline of society and economy - the grocer, the restaurant operator, the saloon owner, the money transfer outlet right next to you, the farmer supplying milk, a banking agent facilitating direct benefits transfer who even in this time of health fear and uncertainty is being expected to stay open and deliver the essential services.
“We salute to their bravery and hard work and have committed ourselves to work more for them to make sure their businesses are not affected. We spoke to over 300 such MSMEs to understand their immediate financial & health needs. Basis the feedback we quickly turned around to design a unique product - Lockdown Loan with full insurance cover against Covid,” he added.