Loans are necessary whether you want to open a start-up or own any business. Further, if you’re going to expand your company or increase or manage your inventory, you might require a loan.
Gaining a loan can be a difficult task sometimes. And when the sum is high, finding a lender becomes even more challenging. Even though, you don’t have to worry as you have got CredAvenue to fulfill this need. CredAvenue is a recent start-up that helps businesses in getting loans. In this article, we will explain to you the whole process of the CredAvenue loan and highlight some of its alternatives. So, keep reading it till the end.
What is CredAvenue?
CredAvenue is a start-up that helps businesses and enterprises get loans from lenders. They provide one of the most comprehensive and inclusive technology stacks for money disbursal and collections. It offers several platforms for enterprises, banks, financial institutions, and other participants.
You can quickly get term loans and working capital solutions as an enterprise. If you are a bank or any other financial institution, you can partner with CredAvenue for co-lending or providing a bond platform. After joining CredAvenue as a partner, you can access their network and work on their system.
Its primary goal is to become a global leader in debt markets with its special schemes. Over $10.5 billion of CredAvenue loans have been facilitated by, and more than 2,300 corporates, 450 enterprises, and 750 lenders have partnered with them.
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How to Apply for a CredAvenue Loan?
To apply for a loan on CredAvenue, you will have to use it through CredCo-Lend. CredCo-Lend is the platform where banking and non-banking institutions collaborate to lend money to borrowers. With CredAvenue’s CredCo-Lend, one can easily connect with multiple lenders with just a click.
The whole process of Debt Financing happens over 7 days period, and the process is explained below:
1. Process Discussion and Mapping
In the first step(day), borrowers go through the CredAvenue space and understand the marketplace. On the other hand, lending institutions start post-discussions.
2. Data Points is drafted
CredCo-Lend and the lending institution draft a data checklist.
3. SOP Development
In this stage, the checklist is sent to the business team of CredCo-Lend. After they try to form an SOP with the originator, it takes less than 24 hours to draft the SOP.
4. SOP Finalisation
If both parties agree on the SOP drafted, the given SOPs are signed off.
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5. API Integration
After both parties sign the SOPs, the originator and CredCo-Lend system integration is done. This integration is helpful in embedding and sharing the data, which is essential for the co-lending process.
Once the API integration happens, originators access more than 40 and 15 banking and non-banking institutions. It helps them to pair up and create different business deals.
7. UAT(User Acceptance Testing) and Go-Live
The originator sees how the product/s will appear in the marketplace in the final stage. UAT helps them evaluate all the contract terms made by CredAvenue before going live.
Alternatives of CredAvenue
CredAvenue isn’t the only company in the debt market, and there are several of its competitors and alternatives available. We have listed down a few of the options if you don’t want to go with the CredAvenue loan.
RazorPay also gives loans to businesses and enterprises at a very competitive rate. The whole process of lending doesn’t take much time.
However, the company right now doesn’t have any license in India, and it just acts as a link between small enterprises and banks.
2. Digit Insurance
Digit Insurance doesn’t provide loans directly to businesses, and it has collaborated with ZestMoney to fulfill this segment.
The partnership with ZestMoney allows them to give an optional insurance scheme to the customers at the time of loan application.
The eCommerce giant of India has recently started lending loans to businesses and enterprises. The minimum loan amount offered by them is 10,000, and the maximum amount goes to 2 lakh.
You don’t need to provide any collateral to them while getting a loan in terms of requirements.
4. Clix Capital Services Pvt. Ltd.
Clix Capitals provide a loan of upto 25 lakhs at a low-interest rate. You also get the freedom to choose a repayment period from 12 to 60 months.
The company has lent more than 5 million loans to date and is planning to disburse over 4000 crores of loans in 2023.
Getting loans for your business or enterprises seems like a daunting task. But with CredAvenue, the whole process looks so easy and hassle-free. In this article, we explained everything about the CredAvenue loan process. We also highlighted the alternatives of CredAvenue in case you want other multiple options too.