CredAble partners with Aditya Birla Finance to revamp credit underwriting in MSME lending


CredAble, India’s premier fintech business specialising in supply chain finance, and Aditya Birla Finance Limited, a major participant in the financial services industry, join hands to established a strategic alliance to change MSME (Micro, Small, and Medium Enterprises) lending in India. This collaborative relationship is positioned to transform traditional MSME finance by combining cutting-edge technology and advanced analytics.

With CredAble’s advanced solution, ABFL has seen a significant boost in lead flow, with approximately 80,000 leads generated in the last six months. Furthermore, it has enabled the establishment of a huge database for a large NBFC like as ABFL, improving analytics for cross-selling various products such as merchant finance, top-up loans, and equipment financing. The implementation has also led to higher Net Interest Margins (NIMs). Relationship Managers can now effortlessly handle both manually and digitally sourced leads, demonstrating the efficiency of the integrated solution.

CredAble has created a multifaceted digital underwriting solution for ABFL that includes dynamic case management, intelligent workflow, and powerful credit risk and decisioning support systems. Aditya Birla Finance Limited has successfully introduced Udyog Plus, an end-to-end solution that tackles significant pain points in the B2B loan process and plays an important role in serving MSMEs’ diversified demands, into the SME ecosystem thanks to CredAble’s digital underwriting experience.

Highlighting the significance of their advanced underwriting solution, Nirav Choksi, Co-founder and CEO of CredAble stated, “Accuracy and precision are crucial in the digital lending landscape. State-of-the-art underwriting today involves a fully digital workflow and extensive use of a wide range of third-party data. Entities lacking systems with alternative credit scoring mechanisms will be at a disadvantage in pricing risk effectively and supporting MSMEs competitively. We’re extremely delighted to back ABFL with our underwriting solution that automates the end-to-end lending experience that was previously highly manual. As a result, our digital lending solutions are enabling low-interest credit offerings and faster credit decisions, empowering MSMEs with unprecedented access to unsecured business loans and bringing ‘credit invisible’ customers under the formal financial fold.”

Using advanced machine learning algorithms, built-in analytics tools, and a thorough understanding of consumer segments, CredAble has created a suite of new financing solutions for small and medium-sized firms, which are generally classed as high-risk assets.

Also Read | CredAble enhances Capital Market appearance with Commercial Paper Programme

Commenting on the collaborative efforts of CredAble and ABFL in streamlining the MSME lending process, Rakesh Singh, MD & CEO, of Aditya Birla Finance, said, “At Aditya Birla Finance, we are on a journey to empower MSMEs and entrepreneurs, assuring them that we are the financing partner they can always count on. The collaboration with CredAble marks a pivotal moment for ABFL. CredAble’s digital underwriting solution has not only streamlined our lending processes but also significantly improved our efficiency in serving businesses, setting a new benchmark in unsecured business loans for MSMEs.”

This strategic agreement intends to provide MSMEs with accessible and specialised financing solutions, resulting in sustainable growth for these businesses. Furthermore, the group is dedicated to promoting innovation and co-creation in the financial sector.

"Exciting news! Elets Banking & Finance Post is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!

Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔

Get a chance to meet the Who's who of the Banking & Finance industry. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.