Fincorp automates MSME loans with digital-first model and real-time data integration

MUMBAI: Poonawalla Fincorp has automated loans for MSMEs by using algorithms for loan approval after drawing borrower information directly from sources such as credit bureau data, GST information, and account aggregators.

The NBFC has launched a fully digital product—Business Loan 24/7—that runs on a risk-first model and is available round the clock. It uses a straight-through processing system for onboarding and disbursal, eliminating the need for physical documentation or branch visits.The model draws on India’s digital public infrastructure to extract real-time borrower information, helping the lender assess creditworthiness without relying on conventional income documentation. The company said the new system will support responsible lending to enterprises ready for growth, especially in self-employed and MSME segments.“India’s Rs 4 trillion economy makes MSMEs one of the most robust credit growth segments over the next 10 years. Our assumptions are based on the country's strong financial infrastructure—credit bureau data, GST information, account aggregators, and risk analytics,” said Poonawalla Fincorp Managing Director and CEO Arvind Kapil.

“This product will be built into the portfolio in a sensible, risk-calibrated manner and we believe it will be a strong and convenient offering for good-quality MSMEs.”Poonawalla Fincorp plans to target MSMEs across Tier 1, 2, and 3 cities, particularly in retail, services, manufacturing, and trade. The firm expects the digital risk-first model to create a competitive edge by removing bottlenecks in credit access while maintaining underwriting standards.

The platform’s integration with digital sources enables real-time financial behaviour tracking and efficient identity verification.The launch builds on the company's earlier rollout of a similar 24/7 digital credit product for salaried individuals. The firm expects Business Loan 24/7 to help it strengthen its presence in the MSME segment and improve customer acquisition. It plans to expand the initiative gradually over the next four to six quarters.