Month: January 2023

Gold Loan is presently booming and is the fastest-growing loan category amongst the various types of credit offerings in the market. It has witnessed a phenomenal growth opportunity owing to its ease, flexibility and swiftness. As per Reserve Bank of India’s (RBI) data, the outstanding loan against gold jewelry stood at Rs 56,596 crore as on February 26, 2021 and grew impressively displaying a 26.2% YoY growth. As of 25th February, 2022, it has risen to Rs 71,408 crore. In 2017, the World Gold Council estimated that Indian households possessed between 24,000 and 25,000 metric tonnes of gold and in 2019, the said estimate was worth as much as 40% of India’s Gross Domestic Product (GDP). To add to this interesting topic, rural India accounts for 65% of the total estimated gold holdings in India. This data goes on to tell that rural India has great potential if targeted and put to use correctly. Personal loans are the fastest-growing loan segment of consumer debt. Its market grew by 10-12% over the last 2 years. However, the gold loans market grew 5 times faster in comparison to overall personal loans granted by all banks together. Although gold loan holds just 2% of the total personal loans under bank credit, it is an interesting growth insight especially since the gold loan is superseding personal loans in terms of their acceptability in the market. So, what has played a major role in this acceptability? To a certain extent, NBFCs have played a role in this change in statistics. As of date, NBFCs hold a larger block of the gold loan segment. Quick and hassle-free free processes have played a vital role in this switch. For all other forms of credit, a KYC and strong credit score are a prerequisite but in the case of gold loans, the KYC and credit scoring criteria are comparatively lenient since it is a form of secured loan and the lender has a complete right over the gold that is exchanged in favor of funds. This reduces the risks involved for the lender and is proving to be a preferred method of credit in the market. Furthermore, since banks are shielded while extending gold loans, they transfer some benefits to the customers too in the form of low-interest rates and if an individual has a strong credit score, the interest rates are brought down further depending upon the lender as it reflects the creditworthiness of the borrower. Gold loans are secured loans that function solely on the gold you offer. Based on the market price, amount of gold and its purity, the gold rate is estimated and a loan is extended. However, as per RBI guidelines, a lender can extend a maximum of 75% of the gold’s value. This means one’s income, age, credit score and other rigid prerequisites play no role here! Furthermore, gold loans also help one improve their credit scores in the long run. So it’s a win-win situation for both, the lender and the borrower. One may have an average credit score but since gold is a verifiable and stable market instrument, it acts as a strong collateral for the individual. And, if the individual continues to pay the EMIs on time, it also acts as an enhancer of credit score. Upon repayment, the gold assets will be received in the same weight, state and price that they had been mortgaged for. Since they are placed in triple-layered security storage, the reliability aspect also plays a critical role in its growth. Conclusion Several elements have played a role in the agile market growth of gold loans but credit score being no bar is one of the major reasons for its acceptability. It has the potential to serve Urban and Rural populations alike and pull a larger segment of individuals under its wings who can avail of a loan thereby noiselessly paving way for financial inclusion!

The realm of financial services is turning highly dynamic to match the preferences and needs of the audience. Financial service providers are quickly shifting from product providers to service providers, thus paving the path for the emergence of cross-industry value propositions. Partnerships, alliances and an understanding of value addition have played a major role in facilitating an ecosystem to address and cater to non-financial offerings. Fintechs, followed by traditional financial institutions, started with the intent to introduce financial services as a part of everyone’s everyday life. Terming it embedded finance, they integrated financial services to non-financial businesses for ease of use and to ensure an end-to-end customer journey. From daily necessities to non-essentials, embedded finance covered all the needs. Furthermore, the intent to provide a frictionless experience ensured financial institutions were constantly innovating thereby making themselves relevant in the lives of their customers. The interaction and personalized offerings make them not only the primary bank or insurer but the personalized primary service provider. Fintechs have invested heavily in brand recall, personalization and security to onboard as many customers and build an unforgettable customer experience. This trend is predominantly observed in Asian Markets with service providers like PayTM, PhonePe, Google Pay, etc. For instance, Whatsapp, a messaging platform, has integrated UPI on its platform to offer end users a cross-industry value proposition. Non-financial businesses like Ola and Uber have also integrated payment and insurance options on their platform to allow passengers to complete their customer life cycle on a single platform. Moving towards innovation, Fintechs are now working on further transforming the financial world by building Super Apps and competing with the BigTechs. Although there is talk about BigTech’s monopolizing Super Apps space, several Fintechs are working around it and devising unique propositions that are worth a collaboration. Even public-listed Fintechs like Niyogin with a unique business model are participating in empowering non-financial businesses by offering Banking as a Service (BaaS). Niyogin’s platform, NiyoBlue, offers customers a complete life cycle. Customers can avail of credit, insurance, investments, banking products, payment products and much more on a single platform without having to leave the app. By integrating and embedding all the financial services on a single platform, Fintechs like Niyogin is a winning game because they cater to current customer preferences. As an organization that focuses on financial inclusion, the cross-industry value proposition for Niyogin means to serve the underbanked by empowering small local businesses. Since the focus is on a specific customer segment, Niyogin has successfully built a specialized proposition around the said segment. To conclude, the cross-industry proposition is a tool for Fintech and non-financial businesses alike to expand their service stack and offer their respective clients a bundle of services under a single customer life cycle.

India has attained the title of the world’s third largest Fintech market with 7,460 Fintech companies, following US and China closely with 22,290 and 8,870 Fintechs, respectively. The Indian fintech market received $29 billion in funding across 2,084 deals to date, attaining a 14% share of the global funding and a #2 spot on the deal volume. Furthermore, India’s fintech sector’s CAGR grew by 20%, which was higher than that of the US, UK and China which witnessed a growth of 16%, 15% and 10%, respectively. Recording over $800 billion in annual payments transaction value, Fintech has made a remarkable contribution to the Indian economy by its virtue of state-of-art products and an inclusive approach to cater to every Indian. The future of Fintech in India looks encouraging owing to several economical, regulatory and preferential factors. Listed are a few future Fintech growth drivers – Upstarts have profited from government and regulatory efforts like the Jan Dhan Yojana and Aadhaar implementation to further their mission of inclusivity through financial services. With over 472 Jan Dhan accounts, the government of India has provided Fintechs a base to build upon. Fintechs can leverage the penetration and offer financial services to these individuals easily, for example, Domestic Money Transfers. Millennials and Gen Z are highly receptive and adaptive to innovation and technology. This gives Fintech an edge to build a technology-led financial ecosystem and penetrate every segment of society. For instance, upstarts have designed teen cards for the blooming youth of India. This not only gives the young generation a sense of financial independence but also spreads financial literacy stemming from the provider they choose. Fintechs are now targeting specialized financial domains to strengthen their limited product stack. For instance, platforms with standalone services like wealth management, insurance, credit, peer-to-peer lending, etc are offering customized and tailor-made products to display their strength in specialization while ensuring the customer is covered in every aspect of the said functionality. In a country with one of the fastest-growing start-up ecosystems, the world’s second-largest internet user population and a highly adaptive population, Fintech is not only bringing innovation but also ease and security to the table. Millennials and Gen Z are receptive to change and are keen to switch payment methods, i.e., from cash to digital payments. With existing databases and analysis, Fintechs can leverage the information to design increasingly localized and customized products and services. New business opportunities may emerge through B2B and B2C relationships with firms operating in the banking, e-commerce and logistics space. Upstarts can leverage the ‘digitization revolution’ and can possibly form alliances with non-digital and non-tech companies too to bring their innovation and product to the market. Embedded finance propositions are expected to increase, with banks seeking help from Fintech providers to expand their capabilities with embedded finance, digital wallets, and supply chain solutions. Cloud hosting and Open APIs are enabling Fintechs to launch new products rapidly. Regulators have taken the initiative to leverage technology for facilitating digital penetration. The UPI system was leveraged to introduce UPI123Pay to facilitate the digital enablement of over 40 crore feature phone users in the country. The Payments Infrastructure Development Fund (PIDF) has been created to boost the growth of acquiring infrastructure. RBI has issued guidelines for offline payments, tokenization, and regulatory sandbox. Reimbursement of Merchant Discount Rate (MDR) on RuPay card and UPI transactions have been declared as well. Recently, RBI also proposed to allow the linking of credit cards to the UPI platform. Due to this, credit cards are expected to become more accessible through QR codes without the need for a Point of Sale (POS) machine. Although Fintech business models are not yet designed to generate profits, the future looks quite promising given that the entire financial ecosystem is shifting online. Moreover, with the regulatory framework being put in place by respective regulatory bodies, Fintechs seem to be on a path to success!

The year 2020 and the succeeding period have been choppy on many fronts. From the outbreak of the pandemic, war threat and crypto market crash to the current speculation of a potential recession, together, the instability on an economic front has massively impacted the financial ecosystem too. Although individuals, businesses and countries at large have been adaptive to this highly dynamic environment, an element of lag persists. Going forward, businesses will further adapt to this volatility and may design flexible services. The way individuals and businesses interact with one another will play a major role in defining the journey of service. On a financial front, this means devising services that have a robust security system, innovative technology and smooth customer journey. The coming years are going to be pivotal in the transformation of the financial ecosystem. Here are a few trends to look out for in 2023 that have the potential to transform finance and technology – Increase in the number of banks that offer embedded solutions Embedded finance is on an upward trajectory over the past year and is expected to gain even more traction given the scenario. Several banks are looking to become service providers to non-financial institutions that are looking for ways to enhance customer experience by offering financial services as a part of their larger offerings. For instance, service providers like Ola and Uber now offer insurance to passengers on their platforms at a very minimal rate. This not only extends their service stack but also ensures a superior CX and reliability. Another relatable example is Whatsapp integrating UPI service on its platform for a quick and hassle-free payment system. With the introduction of Fintech, businesses can expand their product stack substantially while ensuring an enhanced CX. Fintechs to reinvent themselves as data organizations Several Fintechs may reinvent themselves as data organizations that have integrated financial services like payments and other financial services too on their platform to differentiate themselves in the eyes of potential investors and alliances. For instance, businesses that calculate credit scores for consumers also let out their information to their potential clients to target the said audience. While their primary business is ascertaining scores, their secondary business line allows them to reinvent themselves. Stronger focus on developing tech solutions in other countries Currently, India stands second to China in the effective adoption of Fintech. However, several developed countries are still struggling to implement Fintech owing to economic, cultural and psychological factors. Countries that are underdeveloped when it comes to financial services are expected to witness increased interest among investors. For instance, Singapore and India have collaborated to link the United Payments Interface (UPI) and PayNow through the Reserve Bank of India (RBI) and Singapore’s central bank, the Monetary Authority of Singapore (MAS). This will pave way for easier transactions between and within the countries. It is further expected that more deals are likely to happen in developing economies including Southeast Asia, Africa, the Middle East and Latin America. Increased scrutiny by regulators of embedded finance offerings The regulatory awareness and intervention are expected to increase in the coming 6-12 months as the number of non-regulated entities embedding and delivering finance offerings increases. The regulators will seek to protect the customers by clarifying issues like available recourse and accountability for transactions done by Fintechs. The Reserve Bank of India (RBI) has already set strict guidelines for digital lenders in the market. The growth in the number of digital lenders was hampering the interest and safety of the end users and therefore, a robust regulatory framework was required. Even a simple quiver in the financial ecosystem could send trembles across the economy and therefore, it is a vital part of the functioning of every business. Its virtue of having a profound impact on your business makes it a domain worth close tracking!

Constant innovation, agility and customer centricity have been a strong forte of Fintech. Leveraging its ability to enforce flexibility owing to its downright digital functionality, Fintech has eased common financial-related tasks. Furthermore, the transparency it has brought by eliminating unnecessary intermediaries has helped it gain the trust of end users. These attributes also happen to be the focal point for a one of its kind Fintech, Niyogin. To be able to enable last mile users is a way of empowering the society for Niyogin! This empowerment comes when individuals can make decisions and undertake their financial tasks. Although the underserved also happen to be the ones with limited digital literacy, Niyogin offers customer-centric services that fill major gaps. Through its diverse digital payment products, Niyogin ensures it designs and launches services that are beneficial to each individual irrespective of demography thereby bringing the population under one net. Digital Payment Methods 1. Unstructured Supplementary Service Data (USSD) The majority of the underserved population own a feature phone that is incapable of accessing an internet connection. USSD targets this underserved public by offering them financial service that does not require an internet connection. Individuals can undertake mobile banking transactions, make balance inquiries and access mini statements through USSD channel. This service offers the public a basic financial service essential to their everyday financial task. 2. BHIM-UPI The Unified Payments Interface (UPI) is a system that combines several banking services, frictionless fund routing, and merchant payments into a single mobile application (of any participating bank). It also handles ‘Peer to Peer’ collection requests, which can be scheduled and paid for as per the user’s need and convenience. Each bank has its own UPI app available for Android, Windows, and iOS (s). UPI has enabled several Indians to make payments from anymore to anywhere with a single click. It has reduced our dependency on physical money and therefore created a smoother transaction journey. 3. AePS Aadhar Enabled Payment System (AePS) This service goes beyond the need for an internet connection or even a basic feature phone. Individuals residing in the interiors of India are often deprived of basic amenities and owning a phone may come across as a luxury for such individuals. This challenge restricts the masses to access basic financial services and to combat this challenge, AePS was launched. AePS is a bank-led model that enables online interoperable financial transactions at PoS (Point of Sale/Micro-ATM) using Aadhaar authentication through any bank’s Business Correspondent (BC)/ Bank Mitra. 4. Mobile wallets A mobile wallet is a device that allows a user to carry cash in a digital form. One can use their mobile device to attach their credit card or debit card information to the mobile wallet application and transfer money to another mobile wallet online. Although the rural population in its entirety may not be the target audience for mobile wallets, however, this comes as a respite for the tech-savvy urban population, especially the millennials and GenZ. 5. Micro-ATMs or m-ATM MicroATM is a device used by Business Correspondents (BCs) to provide basic financial services in rural areas. BCs are typically local shop owners or Kirana owners impaneled by Niyogin with MicroATMs installed in their stores to enable customers to deposit, withdraw, transfer and make balance inquiries. For the 900 million rural population, financial services were a luxury given the risk and infrastructural challenges attached to servicing them but with innovative devices and strategies, this crowd is being included within the financial realm. 6. Bharat Bill Payment System (BBPS) The government of India, a critical stakeholder in the development and inclusion of the underserved, are actively taking initiatives towards increasing water and electricity supply in rural areas. This move is expected to propel the growth in utility bill payments. For the last-mile users who have limited to no literacy, assistance in financial-related decisions will prove to be a path to acceptance too. 7. Account Aggregator (AA) There are several consent managers under the Data Empowerment and Protection Architecture (DEPA), whose main aim is to empower every Indian with control over their data. AA is one of the consent managers exclusively meant for financial data that manage consent for financial data sharing. These consent managers are ‘data blind’ and ensure encrypted data flow. They democratize data access and allow secure portability of confidential data between service providers. With over 65 million migrants hustling outside their origin-village, Domestic Money Transfer is an essential financial service they seek and with the help of AAs, a transparent and secure transaction is a reality for them. 8. Domestic Money Transfer (DMT) Over 65 million migrants scatter throughout India in search of better opportunities to feed their families. However, because they do not have local bank accounts, money transfers and banking access are difficult for this consumer group. Customers who use DMT- enabled outlets can convert their cash savings and remit them to their own or family’s bank accounts at any time. This service also eliminates unwanted intermediaries, therefore, making the entire process safe. For the Urban population, digital payments are a necessity whereas, for the rural population, it is a luxury. A lot can be accredited to unequal opportunities, risk and literacy. However, with numerous government initiatives in collaboration with a strong vision Fintech like Niyogin, luxury is slowly changing into an everyday reality for the rural population.

Not too long ago, traditional businesses would attempt to build internal proprietary solutions and would dignify the production of such internal developments. It allowed them to distinguish themselves from the clutter and emerge as a leader by virtue of their catalogue of internal technological developments. While partnering with Fintech helped traditional businesses to fill their digital restraints, make use of legacy data effectively and scale their business, it reciprocated by allowing Fintech to display their technological agility, allow market penetration and ensure acceptance owing to their brand recognition hooked to it. Where a majority of us highlight how businesses have leveraged this opportunity, Fintech has equally grabbed growth and progress opportunities through these partnerships. As various business ecosystems continue to evolve to become more complex and crowded, it is rudimentary to pick the right partner to ensure equitable growth for both counterparts. A profitable arrangement between the incentives and alignment of the strategic objective of both counterparts is the key to designing a successful partnership. Niyogin, a one of its kind public listed Fintech, devises effective ways to leverage partnerships that provide an enriching journey to both. By ensuring stickiness in 3 critical ways, Niyogin strives for a long-lasting partnership – Platform integration Being a technology-first firm that deeply believes in the potential and growth of digitization, Niyogin ensures that its infrastructure is smoothly and deeply integrated with its partner’s platform. This enables both parties to undertake tasks efficiently and transparently. For instance, Niyogin provides vigorous training to its Village Level Entrepreneurs along with providing its solution to ensure the end users avail the platform’s benefits to the last mile. Furthermore, given that rural individuals lack basic digital literacy, this training educates them to use technology efficiently and to their benefit. Although this process is time-consuming, it ensures seamless service delivery. Platform capability Niyogin is continually enhancing its platform’s capability to ensure the best-in-class customer experience. By ensuring frictionless and high success rates at the time of transactions, the platform not just helps in building trust among rural individuals, but also helps build the trust of partners and quality of service. Underpinning Niyogin’s commitment, it launched its proprietary switching platform “iswitch” on NPCI’s NFS network, in partnership with IndusInd Bank to provide a frictionless end-user experience at scale, whilst remaining fully compliant with regulations. Broadening of the product stack Niyogin is focused on building a larger product stack to provide customized solutions and augment network monetization for partners by increasing the prospects to cross-sell. For instance, Niyogin’s insurance leg markets insurance policies for some of the industry leaders. While it acts as a promising partner to these alliances, it ensures the end customers can avail of all financial products on a single platform – NiyoBlue. This is a classic case of expanding its product stack by leveraging partnerships. Interest-aligned partnerships ensure both counterparts remain focused and ahead of their competitors through collaboration, technology leverage and a cut-throat strategy accelerating engagement with end clients. The collaboration is not just between two businesses but it’s the coupling of skills and opportunities furthering each stakeholder’s growth!

Introduction A financial review is a review of a company’s financial records that provides confidence in the credibility of its financial statements. A review, unlike an audit, is more limited in scope, assessing a company’s financial statements while restricting the study to analytical techniques and management evaluation. A review can establish the plausibility of a company’s financial statements, identifying if financial statements are free of serious misstatements and satisfy generally recognized accounting rules. A review is usually assumed to be an initial step toward moving into an audit the following year. However, this is not always the case. A review, however, has its own set of advantages. Having financial statements evaluated provides an additional, unbiased pair of eyes on a company’s financial accounts, whether Internal or external. This can assist give additional security and trust to a company, its board of directors, lenders, and investors. A financial review can be highly beneficial for SMEs. Why? SMEs should regularly examine their comprehensive financial records to acquire a better understanding of their performance and adjust accordingly. Aside from enhancing financial reporting efficiency, the financial review allows small businesses to properly reflect on company performance, which can help them identify opportunities, as well as management of risks. In addition, this strategy can assist in lessening the likelihood of negative business shocks at the end of a financial year. How to conduct a financial review? Accumulation of books of accounts and records, assessment of its completion, and quality of work. A systematic review of the books of accounts ensures that accounting standards and regulations are complied with. Review of all the income and expenses, double-checking the money coming and out of business Review the payments made to ensure all the vendor payments are done as agreed. There are a few fillings that each business needs to do. Like GST, TDS, and other statutory liabilities, a prompt follow-up on the same A check on the efficiency of financial control policies Each business follows a reporting structure, a check on whether it followed. Proper procedure. Filling of the findings of the review What to expect from a financial review: Analysis Checking compliance with business regulations should be part of the financial review process. The review must, at the very least, include a description of the company’s revenue and expenses, such as the payment of supplier invoices and personnel costs. In addition, reviewing the company’s current assets, plans for future capital investments, and how they can use government support is a good idea. Tax Matters SMEs should check to see if any upcoming tax changes could have an effect on the company in the forthcoming year. After the fiscal year, adjustments to corporate operations, personnel counts, or spending may also impact taxes. A financial review can aid in such an assessment to maximize tax efficiency. Review of objectives The end of the year serves as a helpful reminder for SMEs to update their business and marketing strategies and plans to keep them in line with the larger economic climate. A financial review can be regarded as a checkpoint where any required additions or alterations to defined goals can be done. Technological adaptability The secret to corporate elasticity is achieving the highest operational and cost-efficiency levels. It’s crucial to think about how corporate operations are being carried out and where there may be room for adaptation of modern technologies to carry out tasks more quickly, intelligently, and effectively. The use of digital solutions by many SMEs has streamlined manual procedures and allowed staff to concentrate more on revenue-generating activities. Final thoughts A financial review enables small businesses to keep a systematic check on the efficiency of the financial books of the business. Proper maintenance of books with all protocols implemented can help a business save a lot of hassles, time and money. A financial review can be performed with the help of a financial consultant. Visit Niyogin and learn how a small company’s financial review may help you define your business goals. A business owner has the knowledge required to make crucial business decisions that will enhance operations and enable you to expand effectively in the coming year by extrapolating books of accounts and conducting financial modeling.

Introduction: The process of measuring, monitoring, and optimizing the number of net cash receipts minus the costs incurred by your firm is known as cash flow management. An important factor that establishes a company’s financial health is its cash flow. It is quite crucial for a small company. This is because the company will quickly experience cash flow issues if it spends more than it makes. The most important cash flow component for small firms is to prevent any substantial cash flow constraints brought on by excessive expenditure. CGTMSE Loan: Credit Guarantee Fund Trust for Micro and Small Enterprises is the full name of the organization. Financial institutions offer this fund to ensure credit to MSEs and SMEs. This program helps aspiring entrepreneurs to start an SME or MSME. These companies are regarded as the Indian economy’s bulwark. The advance is paid back thanks to the guarantee, which takes care of the borrower’s default. Thus, Niyogin helps with credit aggregation as part of their Urban Tech Portfolio. Eligibility Criteria: The credit guarantee is considered to back the borrower with collateral and a third-party guarantee by the CGTMSE rules. A financial institution, which may be an NBFC, loans money to the MSME and SME sectors under this program and these companies are qualified for a fund with a maximum credit cap of Rs. 2 crores. Problems of cash flow management in the Indian scenario: Unfortunately, India’s habitual late payment cycles make it difficult for SMEs to manage their cash flow. According to a recent IFC survey, 35% of Indian SMEs don’t get paid till 90 days after the products or services are provided. This implies that a significant portion of the SME’s revenue, which should ideally be accessible, is locked up as receivables at any given time. When the SME’s cash flow is out of whack, it must either delay making crucial business decisions or risk defaulting on its obligations. Having said that, India’s micro, small, and medium companies (MSMEs) are undeniably a force to be reckoned with. They are hailed as the economic growth engine. Right now, 111 Million jobs in the nation are solely attributable to this 63-million-unit sector. Also, in 2020–21, MSMEs contributed close to 29 percent of India’s GDP. The way forward and role of Niyogin in such effective management: Businesses requesting loans must list their assets and produce a cash-flow statement. Even without any assets to back them up, cash-flow-based money lending enables businesses to borrow money based on the projected cash flow of the money. For firms, such as SMEs, that cannot use tangible assets as security, cash-flow lending (CFL) is the ideal option (small and medium-sized enterprises). SMEs typically keep their assets and sales below a specific level; therefore, cash-flow loans benefit these businesses. Thus, Niyogin plays an anchoring role in providing an umbrella solution to such micro cash management problems. Therefore, a timely infusion of funds can help SMEs manage their cash flow and overcome problems caused by late payments, unplanned expenses or costs associated with expansion plans. SMEs can effectively simplify their finances and foster growth even during periods when they may not have as much cash inflow as anticipated by utilizing cost-effective working capital.

Running a business is certainly no easy task. There are a lot of legalities involved in it, and the most important one is filing business ITRs in time. It’s a standard practice for small business owners to find ways to save on taxes. Every little amount saved is precious for small business owners. Here we discuss 10 simple ways of saving on tax. Being financially organized- One of the most important ways of saving on tax as a small business is by being organized. Always file your income tax returns on time. Ensure you have made sufficient investments under Section 80 C and 80 D to claim exemptions. Always keep a separate business account, use bookkeeping software to track the banking transactions, and last but not least, as a small business owner, keep all the receipts of your transactions. Always make tax deductions at the source- Many small business transactions need to consider service providers or buyers to make tax deductions. For instance, if you pay Rs 200,000 as a commission to your business agent but forget to deduct TDS @10%, the whole 200,000 will be disallowed while doing profit calculations. Apply for a business loan- Another way small business owners can save on tax is by applying for a business loan. Tax exemptions could be availed based on the business loan interest rates. Avail of home office deductions- Many small businesses operate from home. You may be surprised to know that you can claim tax exemption under ‘home office deduction’. You can give the details of your utility bills, property, and mortgage tax. Save by showing preliminary expenses- To help small business owners, the income tax department allows the new entrepreneur to divide the initial business set-up cost into five instalments. It includes market study, project report, and other expenses under Section 35D of the Income Tax Act, 1961. Save tax on the spending of high-value items- When we start a business, we often purchase high-value items like printers, furniture, computers, etc. Over the years, the value of each high-value item gets depreciated, and the capital spent on each item will help save tax on the small business owner. Medical insurance is essential- A small business owner can claim tax exemption up to Rs 15,000 on the premium paid for medical insurance as per the Income Tax Act 1961. This is one of the easiest ways to save money on taxes. Save more on client expenses- Whether you are running a small or big business, you have to meet and interact with new and existing clients to build strong relationships with them. For this purpose, parties are organized, and lunch and dinners are hosted. But to claim tax exemptions, a small business owner should keep the bill copies and later add the same to accounts under the head ‘Client Expenses’ according to Income Tax Deduction requirements. Avoid making cash payments- Even if your business is small, avoid making cash payments above Rs 20,000. The reason is that the Income Tax Department of India disallows cash payments and considers mainly cheques, draft, NEFT, or RTGS. For instance, if repairs are being conducted in your factory and you pay above Rs 20,000 in a single day in cash mode, the Income Tax Department will not consider those expenses. File ITR on time- The Income Tax Department suggests filing ITRs on time to avail of benefits. You can carry forward the business income losses for a consecutive eight years. You can move forward only when you file ITR punctually. Bottom line With wise financial planning, you can save a lot on taxes. You can consult tax professionals for help with obtaining the most tax exemptions.

The rise of Peer to Peer lending in India On the back of technology, fintech has grasped the depths and breadths of the Indian financial ecosystem, from remittances to virtual banking to insurance authentication and financial profiling. Peer to Peer lending, a rising sector in India’s fintech scene, made its debut eight years ago, but thanks to the country’s rising credit demand, the industry is currently creating the groundwork for rapid expansion. Peer to Peer lending, which is driven by technology, has designed a reliable loan and borrowing process while opening up banking functions to the general public. By connecting potential investors and people looking for loans, the portal opens up the market for lending partners as well. Broadening the horizons of Peer to Peer lending Even though the market is still in its early stages, Peer to Peer has begun to acquire traction in India. However, the 2017 RBI recommendations addressed some of the industry’s major issues and cleared several unregulated practices. The notification issued by RBI compelled all Peer-to-Peer lending platforms to register as non-banking financial entities (NBFCs). The RBI has also reduced the upper limit criteria for lenders on the Peer-to-Peer platform from 50 lacs to 10 lacs, a regulatory step that the industry has widely praised. Furthermore, the RBI has encouraged all Peer-to-Peer operators to establish a trustee to supervise the movement of payments between escrow accounts of borrowers and lenders. According to the apex body’s requirements, the trustee must be bank-promoted to maintain proper platform supervision. Such regulatory measures have been pivotal in increasing the confidence of both the borrowers and the lenders while ensuring that the process remains transparent. Why is Peer to Peer lending crucial in today’s market? Peer to Peer lending platforms caters to the financial requirements of a huge segment of the population that would usually be excluded from the traditional credit industry. The pandemic, which compelled banks and financial institutions to be prudent and restrain liquidity, expanded the country’s credit deficit even further. Peer to Peer lending has been working hard to overcome this disparity while also creating favorable credit and borrowing environment. The loan industry has grown significantly in recent years, with the size and quantity of lending platforms steadily increasing. Riding the economic upswing, impending holidays, and a boost in consumer attitudes, the sector is offering personalized solutions and products to meet the country’s rising credit demand. What makes Peer to Peer lending so appealing? The earnings on a Peer to Peer lending platform, which vary between 11-13%, are considerably higher when compared to savings deposits or mutual funds. The platform is rapidly growing as a new-age, alternative asset class that is progressively reshaping the investing environment in the country, with the simple premise of identifying borrowers asking for quick capital infusion and connecting them to lenders looking to make large returns. Lenders are executing the proper loans in a timely and safe manner, while also gaining exposure to new markets, and borrowers are now able to receive credit readily even in the country’s most isolated town or village. Businesses can expand their borrowers’ base by gaining access to customers who have been denied loans by traditional banking systems, thanks to their quick clearance procedure and effective complaints channel. So, is India Peer to Peer lending ready? India is the world’s second-fastest-growing economic powerhouse. Millennials, as young as 21 years old, nowadays are focused on living their life to the fullest, even if their resources are restricted or limited. People are wanting money to be available practically instantaneously to meet these needs, which is why they are turning to newer routes of finance such as peer-to-peer lending in India. The Fintech sector in India has a considerable number of firms with feasible opportunities that are regulated by the RBI and flourish in their area on the foundation of predictive stats, a solid back-end network, and effective collection and recovery methods. Peer-to-peer lending is fundamentally transforming the Indian fintech environment by giving every Indian the opportunity to avail of instant credit. Because of this, India is becoming more credit-inclusive, which is helping investors access quality asset classes.

What is the Niyogin Platform? Niyogin, a national neo-banking platform, aims to provide financial assistance to small and micro-scale enterprises. It gives SMEs and the unbanked access to funds and envisions enabling them with technologically-advanced solutions. Niyogin is a technology-first platform that embraces the entire MSME landscape from rural to developing metropolitan areas. The platform aims to aid the government’s efforts of financial inclusion and financial literacy along with smooth credit, investment, and cloud-based software services. The Niyogin Platform: Objective The neo-banking concept aims at developing technology-based banking channels. Neobanks are online-only financial institutions without physical locations. As a result, lending institutions powered through Fintech companies and a network of channel partners provide accessibility to the unbanked to aid their different banking requirements. Niyogin offers various services, including lending, money transfers, and mobile-first financial solutions. The Niyogin digital platform provides impeccable solutions to customers by making the experience accessible, seamless, and smooth. Making banking transactions smooth swiftly includes the unbanked in formal finance. How does the Niyogin Platform work? Rural Tech – Rural Tech of Niyogin, powered by the iServeU platform, enables registered partners and their retail locations to assist rural residents by offering local financial services. Urban Tech – Its Urban Tech functions through a distribution network of financial experts supported by product partners. The aggregator platform offers MSMEs simple, total digital credit access (traditional banks & non-banking financial companies).  For a smooth flow of credit and ease to its customers, the Niyogin platform forms a strategic alliance with financial institutions, enabling it to deliver services efficiently. How can you secure a loan through the Niyogin Platform? Niyogin Platform’s Urban-Tech segment deals with credit Solutions. There are two types of loans that members can avail themselves of: Secured loan Against Property. Against Security. Unsecured Loans Whether there is a need for a business loan, a need to avail of a buy now pay later credit or a working capital loan to buy machinery; with the Niyogin platform, one can avail of all types of unsecured loans. Niyogin works towards the enablement and advancement of small and micro industries through easy credit availability in a more straightforward form. With one click on the link, enquire about the loans, and a financial partner will get in touch the same day to demonstrate Niyogin’s seamless credit process. Features Completely digital process. Quick approvals against security. Higher level of credit against a property. A highly competitive interest rate. Easy EMIs. Eligibility check is just a 3-step process Apply for the loan with the Niyogin Platform. Provide the necessary application details. And voila, you are pre-qualified. A prequalification technically means that if all the provided data, KYC, and other conditions of the partner institutions are clear, one can get a loan quickly. Why Niyogin? It is all about infrastructure; the Niyogin platform aids in utilizing the technologically advanced way of securing credit. With platform-based applications and various formats of credit availability, a customer enjoys the features of cutting-edge Neo banking. Final Thoughts The Niyogin Platform is designed to encompass the solution to the problems that small and micro businesses of India face, especially regarding access to credit. Niyogin Platform is an accurate picture of fintech in neo-banking. To secure a loan with the Niyogin platform, reach out by filling out the inquiry form online.

Introduction India is unquestionably leading the fintech revolution, and the pace of innovation and technical development worldwide is unmatched. The fintech landscape in India has experienced high-speed expansion with the aid of enablers like widespread internet usage, broad area network coverage, quick technological adoption, and epidemic-enhanced digital penetration. Customer expectations, the need for reliable, safe services and a demand for a more accessible financial environment have all dramatically increased due to growing globalization and consumerism. Credit and finance for MSMEs Many micro, small, and medium-sized firms (MSMEs) in India find it difficult to access traditional banking channels. Therefore, the adoption of digital-lending platforms by small businesses has increased in the aftermath of COVID-19. The digital platform’s MSME loan book has witnessed growth over the previous year, thanks to the ability to apply for instant financing digitally. Traditional and new-age borrowers from India’s rural and metropolises have been drawn to the digital channel by the rapid use of smartphone devices at affordable prices and the penetration of the internet. This point is where the neobanks enter the picture. These fintech service providers offer customers financial and banking services that are more convenient and cheaper than traditional banking. Banking service providers like Niyogin offer impact-centric solutions and have created the “Neobank” platform infrastructure to drive MSMEs in rural and urban areas. Governmental support for MSME financing in general Digital-lending platforms have also participated in the Emergency Credit Line Guarantee Scheme (ECLGS). The government introduced this scheme as a component of the Rs 20 lakh crore Atmanirbhar package in 2021 after COVID-19. Under the fourth version of the plan, ECLGS 4.0, the Ministry of Finance has issued an extension of the Rs. 3 lakh crore Scheme from June 30, 2021, to September 30, 2021. Last month, finance minister Smt. Nirmala Sitharaman increased the cap by 50% to Rs. 4.5 lakh crore. On June 28, 2021, the minister said that 12 public sector banks, 31 NBFCs, and 25 private sector banks had distributed Rs 2.69 lakh crore to 1.1 crore units on behalf of the government. Digital literacy Work in Progress for Rural India: The core of financial inclusion in India is Digital Financial Services (DFS). Digital illiteracy hinders the adoption of DFS in rural regions. Despite the government’s efforts to build a linked digital infrastructure, it directly impacts how well-liked digital products are. Limited digital proficiency deters people from using e-banking services due to a lack of trust in technology, the inability to operate smartphones, and inadequate network access. Thus, cash is still the primary method of payment in rural India. Tryst of COVID with the acceleration of digital finance adoption Contactless digital payments can promote the social distancing policies put in place in several nations that aided in halting the spread of COVID-19. Digital payments make it possible to complete transactions and provide financial aid to needy individuals. It is helpful when other disbursement methods become difficult due to health regulations. Digital payment of public wages and other transfers (both G2P and G2B) is also more economical. The ability to provide monetary assistance to households, in particular the unbanked, women, and the informal sector, is improved by digital payment systems. Aadhaar-enabled Payment Services (AePS), offered by businesses like Niyogin, are urgently needed by vast informal sectors in many emerging nations. As a result, these technologies can also speed up transfers, particularly useful in the COVID-19 situation. Conclusion To advance their vision of Digital India, the RBI recently established a new fintech department that focuses on innovation. This RBI department is taking proactive measures to solve the difficulties and roadblocks mentioned above. For the growth of the businesses and the sector as a whole, leveraging collaborations with other fintech ecosystem participants to adopt new technology has become crucial. The future development of this sector will ultimately depend on regulation, cooperation and coordination.