In a move set to transform the landscape of small business financing, Akme Fintrade (India) Limited has announced a strategic co-lending partnership with MAS Financial Services Limited. This collaboration aims to provide increased access to credit for the underserved Micro, Small, and Medium Enterprises (MSME) sector through a seamless, fully digital lending platform. The agreement will see Akme Fintrade bear 20% of the loan exposure, with MAS Financial Services taking on the remaining 80%. By leveraging advanced technology, both companies intend to streamline the loan approval process, ensuring faster and more efficient disbursement to MSME clients across India.

Akme Fintrade’s CEO, Akash Jain, stated that the co-lending model, introduced by the Reserve Bank of India, is designed to address liquidity challenges faced by Non-Banking Finance Companies (NBFCs) and help channel much-needed credit flow to underserved sectors. Jain emphasized that this partnership will allow Akme Fintrade to reach rural and semi-urban regions, enabling more small business owners to expand their operations with affordable financing.

Co-lending Model: A Critical Boost for MSMEs

This co-lending model comes at a time when MSMEs—often considered the backbone of the Indian economy—are grappling with credit access issues. The MSME sector has long struggled with obtaining loans due to a lack of collateral and an often slow-moving traditional banking process. Akme Fintrade and MAS Financial aim to address these concerns by offering a fully digital platform that handles customer onboarding, loan sanctioning, disbursement, and monitoring—all without the need for manual intervention. This will significantly reduce the time required for loan processing.

According to Akme Fintrade, their ability to extend digital financial services to smaller towns and villages will fill a critical gap in MSME lending. Traditionally, rural and semi-urban entrepreneurs have faced difficulties in accessing loans, but this new partnership aims to turn the tide in their favor.

Expert Opinion: The Importance of Digital Lending Platforms

Industry experts have hailed this partnership as a pivotal step for India’s financial sector. A financial analyst specializing in NBFCs, commented on the significance of digital platforms in today’s lending environment. He stated, “Digital lending is not just the future; it is the present. As more businesses move towards a digital economy, the integration of technology in lending will help eliminate inefficiencies and reduce the barriers that have kept many MSMEs from thriving.” He believes this partnership between Akme Fintrade and MAS Financial Services will encourage other NBFCs to adopt similar models, further boosting credit accessibility.

The use of digital platforms is likely to reduce human error and speed up the loan approval process, particularly for borrowers who may not have the paperwork needed for traditional loans. By extending this service to MSMEs, both companies aim to create a robust financial support system that will help strengthen the backbone of the Indian economy.

Future Prospects and the Role of NBFCs in Rural Lending

This partnership is also expected to play a key role in supporting the Indian government’s ongoing initiatives aimed at fostering rural entrepreneurship. As a BSE- and NSE-listed NBFC, Akme Fintrade has been at the forefront of providing financial services to rural and semi-urban areas since its inception in 1996. The company’s portfolio includes vehicle financing and business loans specifically designed for small business owners in these regions.

Looking forward, experts anticipate that more NBFCs will look to similar partnerships to meet the growing demand for credit in underserved areas. As digital infrastructure improves, the prospects for rural and semi-urban lending are expected to grow exponentially.

  Akash Jain, Akme Fintrade, Akme Fintrade India Limited, BSE, Manoj Kumar Choubisa, MAS Financial Services, MSME sector, NBFC, NSE, Reserve Bank of India