MUMBAI: Private sector lender Federal Bank announced on Tuesday that it has launched an online lending platform federalinstalloans.com to facilitate quick and hassle-free credit approvals for Micro, Small and Medium Enterprises (MSMEs) across India.
According to the bank, the platform enables MSME borrowers to get loans in less than 30 minutes digitally, uploading their tax returns, bank account statement and checking tax details online. goods and services (GST). Eligible borrowers can benefit up to ₹50 lakh across the platform at present.
“The platform uses sophisticated algorithms to read and analyze data points from various sources such as IT statements, GST data, bank statements, credit bureau, all in less than 30 minutes by capturing the basic borrower details using smart analytics,” he said.
The bank added that customers can avail business loan approvals from the comfort of their homes without visiting bank branches. Data entry by the customer is kept to a minimum as the majority of details are filled in automatically from uploaded documents such as GST, ITR and bank account statements, he said.
“Once a suitable product is identified for the borrower on the platform, a letter of offer in principle will be issued. The loan will be made available once the documentation process is complete. “Borrower has to go to the bank branch. The borrower also has the freedom to choose their Federal Bank branch when applying for loan approval,” he added.