The business loan scenario in India is undergoing a significant change. Here are the 4 major factors driving the current market.

The business industry in India has adapted well to global and national occurrences in recent times, be it the Indian PM’s demonetization move or USA President Donald Trump’s election. Regardless of the socio-economic changes, entrepreneurs remain as keen as ever on setting up or stabilizing their business ventures with financial aid from lenders. Thanks to the considerable demand for business loans in both organized and unorganized sectors, the number of lenders offering monetary support for business operations has also registered a notable increase. With the arrival of Non-Banking Financing Companies (NBFCs) on the scene, business owners are getting access to highly competitive interest rates accompanied by advanced facilities.

With such key factors already influencing the ways in which Indian SMEs seek financial support, what are the lending trends that will shape the future of the business industry?

Also Read : Everything You Need To Know About Online Business Loans

The Major Trends To Watch Out For In 2017

  1. Greater Demand For Business Loans

The Indian Prime Minister’s move to demonetize Rs.500 and Rs.1000 currency notes led to business owners running to financial institutions for small and medium business loans. The move especially impacted the small and mid-size manufacturers and traders who are more likely to carry out financial transactions with cash. Since demonetization is set to have a long-lasting impact, these businesses will continue to depend on financial aid from finance companies. Additionally, any new enterprises entering this sector will likely follow the same route. Added to this, the availability of business loans online is providing a boost to the SME sector, and will continue to do that in the years to come. With easy online loan application and quick approvals, businesses now have access to funds sooner than before.

  1. Introduction Of Social, Mobile, Analytics, And Cloud (smac) Technology

With the advent of digital technology, businesses are experiencing a sea change in all aspects related to their fields. To stay ahead of the game and gain an edge over the ever-increasing competition, most firms are taking the help of digital technology. Not to be left behind, the business industry has also embraced SMAC technology to further growth and increase revenue. They are likely to experience a phenomenal increase in efficiency and output with this move.

  1. Mutually-Beneficial Partnerships

The introduction of a Unified Payments Interface (UPI) and Bharat Bill Payments System is set to remarkably further the payment ecosystem of India. NBFCs will be able to partner with both bill payment providers and financial institutions like asset management companies to register easier long-term growth. For their customers, this will ensure better service offerings and improved facilities as compared to traditional lending sources like banks.

  1. E-Commerce Is Paving The Way For Efficiency

Having made a noticeable impact in the last few years, e-commerce is only expanding its presence in the Indian market. Not only are most new businesses going digital, but many existing Indian firms are also engaging with e-commerce to fulfil their requirements and accrue savings. E-commerce has not only given new companies an edge over competition, but also made ‘glocal’ business possible, changing the way business is conducted in the country.

All businesses, small or large, feel the need for external sources of money for the smooth functioning and growth of their enterprise. A business loan offers the quickest and most comprehensive way of facilitating this need. A Business Loan from Bajaj Finserv combines the lowest interest rates, highest loan amounts, and the best add-on facilities.

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