What can a School do with a 50 Lakhs Unsecured Loan

In their endeavour to provide quality education and enable all-round development of students through extra-curricular activities, schools in India often need to make some investments. The authorities have to ensure that classrooms are well furnished, there is quality sports kit in the games room, labs have the proper equipment for demonstrations and practical experiments and all essential amenities vital to a respectable educational service are available. To finance such facilities, they may at times seek school loans.

How to get loan for school?” is the first question that comes to mind in such a scenario. Thanks to the digital lending solutions offered by FinTech companies today, recognised schools with classes up to VIII/X/XII standard could easily get collateral-free school loans of up to Rs 50 lakhs.

For what purposes can a school get such an amount? Let’s look at the common reasons that prompt schools to apply for quick loans:

Construct a school building

With a 50 lakh loan for construction of school building, the borrowing institution can build new classrooms to accommodate more students. The amount can also be used to construct a spacious staffroom or for any other structure that the school campus needs. With regular revenue through their monthly fee from students, running schools can afford to pay back the loan amount in EMIs.

Buy school furniture

The furniture used in classrooms and other areas of the school building can seem expensive to buy at short notice. However, quick funding by a FinTech company offering school loans enables the institution to make the purchase conveniently. Like other funds, the amount approved on loan for buying school furniture is credited into the bank account of the borrower within 2-3 days of the application approval and can then be used to purchase the required furniture items.

Build school laboratories

An amount of up to Rs 50 lakhs is usually adequate as a loan for building school laboratory. Schools that have recently advanced their classrooms to X or XII standard may not have science labs for the practical sessions required by the students of these grades. With an unsecured loan from a FinTech lender, they can finance the construction of such facilities. Institutions can also apply for loans to enlarge or refurbish the labs that they already have.

Facilitate transportation

Parents expect safe transport facilities from a school, especially for their younger children. A van, minibus and larger buses can cost anywhere between Rs 7 lakh and Rs 50 lakh depending on its size, brand and age – new/used. Schools that want to buy their own vehicles or enlarge the existing fleet can use FinTech collateral-free loans available for such purposes.

Buy new teaching devices

A quick school loan is the best resort when the school needs to have better teaching devices installed in its classrooms and labs. These could be computers, whiteboards, overhead projectors and other hardware especially commissioned for education purposes. FinTech companies lend up to Rs 50 lakh for such teaching aids.

Develop the school campus

An unsecured loan of Rs 50 lakhs can be used for any other productive purpose that contributes towards the development of school and helps it become a more valuable education service provider. The institution simply needs to state the objective clearly in the loan application and provide the required documents authenticating its eligibility for the fund. It can also arrange for a flexible repayment structure when a FinTech lender disburses the loan for school development.

Apply for Unsecured school loan

As a trusted FinTech company providing loans to schools, Capital Float has customised credit products to support educational institutions across India. To talk about your school loans requirements, feel free to call on 1860 419 0999.

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Online Seller Finance – working capital loans for e-commerce merchants

The fact that ecommerce is growing exponentially all over the world is undeniable. Entrepreneurs everywhere are competing with each other to get a piece of this lucrative pie. Definitely, starting a business in the virtual world entails much less costs, making it easier for more and more people to fulfill their dreams of running their own enterprise.

However, even with ecommerce, there are some things that do need to get taken care. For instance, you will need an impactful website that stands out among the crowd and you will need products and/or services that the market is currently looking for. You will also need to identify a network of suppliers that you can work with and hire employees to take care of the day-to-day activities as well.

Most importantly, you require capital to keep the business running and leverage business opportunities. This is where Capital Float’s Online Seller Finance comes to the rescue. If you, as a new entrepreneur, were to approach a bank or NBFC for a loan, you will be faced with difficult terms and conditions, the least of which is proving that you’ve run the business successfully for at least a year.

On the other hand, with the flexibility, ease of processing and convenience of accessing working capital even an amount as low as ₹1 lakh to as high as ₹3 crores, Online Seller Finance, specifically designed for ecommerce businesses, is the way to go.

Features 

1) Loan range from 1 lakh to 3 crores

We cater to a wide range of e-commerce merchants. Each merchant has a different capital requirement based on their business need or opportunity. With our wide ticket range, we cater to practically any working capital requirement of the online seller segment. These funds could be used for a variety of purposes such as making supplier payments, adding inventory during peak seasons or diversifying into new product categories.

2) Customized credit criteria

We acknowledge that each merchant is inherently different and must be treated individually. Unlike many traditional financial institutions, we don’t follow a cookie-cutter method to underwrite our customers. By leveraging Big Data & Analytics, we are able to underwrite each customer on the merit of their business performance and offer a tailored credit product. For example, the merchant is offered a specific loan amount basis their monthly sales on the marketplace and projected revenue.

3) Quick, online application process

We are a digital finance company and believe in limited paperwork. We offer the convenience of technology to our customers right from the start of the relationship. Borrowers can apply online using their mobile devices, as long as they are connected to the internet. The 10-minute application is very simple, quick and entirely hassle-free. The borrower can upload their documents online and need not visit a physical office for presenting the documents.

4) No pre-closure charges

Borrowers can close their loan by repaying the balance amount before the end of the agreed tenure. We offer the feature of ‘no pre-closure charges’, which means that the borrower will not be liable to pay any extra charges for closing the loan ahead of time.

5) Get up to 2x credit based on your marketplace sales

Online merchants applying for ‘Online Seller Finance’ can avail up to twice the amount of sales they make on e-commerce marketplaces. For example, if the seller makes ₹10 lakhs in sales per month, the seller can receive working capital funds of up to ₹20 lakhs. These funds can fuel growth on the marketplaces, helping the seller to increase their business geometrically. Higher the sales, the higher the eligible loan amount, higher the chances of leveraging business opportunities.

Benefits

1) Collateral-free

Our Online Seller Finance credit product is an unsecured working capital loan. The borrower need not pledge any security or asset as collateral to avail this loan. Funds are approved on the merit of the borrower’s business performance on the marketplace and not on their assets. Merchants can avail funds and operate without the anxiety of conceding their securities.

2) Funds in 3 days

Our technology and Big Data capabilities help us speed up the underwriting process. We understand that ‘timing makes all the difference’ to online merchants, given how dynamic the business is. Payments can’t be delayed and opportunities must be seized immediately. Bearing this in mind, we disburse loans to the borrower in less than 72 hours of the loan application.

3) Flexible repayment terms

Banks and other NBFCs typically function using the model of EMIs, or easy-monthly-installments. ‘Online Seller Finance’ allows you to repay the installment on a fortnightly basis. As a result, the installment is smaller in amount and is less burdensome to repay when compared to a monthly installment, which would typically be twice the sum. This way, your cash flows remain unaffected and you have more funds to deploy into your business.

4) Ideal for expanding your business

Financing the online seller segment is relatively new in the lending space. Not many financial institutions have fully understood this segment, which has caused several e-commerce sellers to return empty handed from formal lenders. Capital Float was the pioneer in digital lending to e-commerce sellers. Therefore, we’ve made it a lot easier for online merchants to avail finance for their business. Our partnerships with leading marketplaces like Amazon, PayTM, Snapdeal, Myntra, Shopclues, eBay, Craftsvilla, etc. has enabled us to reach to a wide range of sellers. Merchants on these platforms can avail easy funding and expand their business on the platform.

Eligibility and Documents

To qualify for ‘Online Seller Finance’ you must comply with the following parameters.

Eligibility

1) Applicant’s business must have minimum operational history of 1 year

2) Applicant’s partnership minimum vintage should be between 3-6 months

3) Minimum quarterly sales of ₹25,000

Documents

1) Bank statements for the last six months

2) KYC documents of the applicant and the organization

Fee and Charges

At Capital Float, we conduct business in the most transparent manner. This means, you’re only obligated to pay a processing fee of up to 2% for the loan. There are no hidden or pre-closure penalties during or after your application procedure.

Oct 24, 2018

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Digital financing: The way forward for financial inclusion in Asia – E27

The authors Aman Bhargava and Akshay Sharma are Senior Vice President and Manager at Capital Float, respectively. Capital Float specialises in digital lending to MSMEs in India.

In this age of digital disruption where technology has made an impact across a number of service sectors — e.g. transportation (Uber), accommodation (Airbnb), retail (Amazon) etc.– finance is clearly no exception. Post the financial crisis, incumbent large financial institutions have been weathering a storm of increased capital requirements (i.e. reduced ability to lend) and increased regulatory costs whilst dealing with an erosion of public confidence.

Digital lending, a subset of digital finance, has been growing rapidly in several large economies in tandem with lending platforms (e.g. Lending Club in the US, Funding Circle in the UK, and Lufax in China). As terms such as peer to peer (P2P) and marketplace lending have come to dominate headlines, digital lending has begun to revolutionise the traditional lending business through the use of technology in order to reduce costs, underwritten with surrogate data points, and speeded up processes.

Lending — ripe for disruption

Lending itself consists of three key areas:

  • (i) Origination (or customer acquisition)
  • (ii) Underwriting (or credit assessment)
  • (iii) Execution (including documentation, contract and flow of monies)

Conventional lending, especially in emerging economies, is an archaic process that is ripe for disruption in each of the above areas.

Traditionally, customer acquisition occurs via brokers or middlemen, underwriting is heavily collateral-based and execution is a tedious process requiring a lot of paperwork that usually stretches up to six weeks in duration. Furthermore, there is a fear of rejection, which in several cultures prevents a number of creditworthy borrowers from applying.

While the opportunity to disrupt traditional financial services is immense, it is important to understand the key drivers in this field. Like most sectors, it is imperative that governments put in place an ecosystem that can help and enable players to create these disruptions.

The three most important enablers for digital lending are:

1. Telecommunications and connectivity

The telecommunication sector has been pivotal in spurring the digital revolution globally. Creating networks that enable consumers to connect from computers, laptops and mobiles are the most basic requirements to kickstart a digital revolution.

From financial services to retailers, everybody depends on networks to provide a compelling online and mobile experience. Telecom operators must offer an integrated, multi-channel or omni-channel user experience: on the desktop, on mobile devices and in stores. The reach of such networks is essential for digital finance to succeed and penetrate new markets.

2. Technology and data

Technology, as one would expect, is at the heart of the digital revolution. Investments in technology by organisations have only been increasing over time.

Advances in digital technology have allowed services to reach a number of people, who had limited or no access earlier. If these advances have to continue, then increased capital investment in equipment and software is an absolute must. Encouraging companies to invest more in R&D, say, via tax incentives is crucial to penetrating the consumer base.

3. Regulations and policies

Post the financial crisis, increased regulations have forced large banks to reconsider their traditional methods, especially in light of additional balance sheet charges. This has opened up new markets globally.

Regulators in the West, particularly the UK followed by the US, have been proactive in allowing these markets to grow and challenge the traditional players. As the rest of the world cautiously opens up to this new space, digital finance players have thrived under flexible and friendly regulations.

It is imperative to encourage an atmosphere in which innovation in financial services and products offered to consumers is prevalent. While the need to be cautious post the 2008 crisis is justified, regulators should be careful not to stamp out truly innovative and disruptive ideas.

Digital finance — banking for the ‘unbanked’

A recent report by The Guardian, states that almost 500 million people across Southeast Asia still often turn to informal moneylenders to meet their everyday needs. Decisions requiring credit, such as expanding a business, buying a house or paying medical bills, are taken out of the hands of the so-called “unbanked”. Uninsured and with no savings, they are also less resilient to health problems, unemployment or a natural disaster.

Digital finance holds the key for financial inclusion, as nearly 50 per cent of the population in developing countries own mobile phones. The impact of digital lending in emerging economies goes beyond the traditional financial services offered. It also helps create additional jobs and acts as an economic stimulator.

A number of firms in Africa and Asia are using digital finance to tackle development challenges. Technological innovations, like mobile money, have acted as catalysts in providing a variety of financial services. Consumers at the bottom of the pyramid in several countries today are using mobile money to make payments for a wide range of services.

Apart from traditional services — such as credit, savings and financial education — consumers also enjoy access to money-transfer services, micro-loans and insurance.

How can we make this happen?

MSMEs (Micro Small and Medium Enterprises) also stand to gain substantially from digital lending. Apart from access to finances, electronic payment systems allow them to secure a diverse range of financial products and an opportunity to build a financial history. The importance of digital finance in building both credit history and transactional data of individuals and firms for lenders cannot be underestimated.

Close public-private cooperation is a key factor for this type of innovation to be taken to scale and enable people to live a more secured, empowered and included life. If approached wisely, it is possible for emerging economies to leapfrog developed nations in the adoption of these digital channels, and at the same time accelerate financial inclusion.

Article sourced from E27. Read the original article here.

Oct 24, 2018

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Digital Marketing for SMEs: Business without boundaries

Information availability and decision-making is becoming increasingly dynamic in nature. This constant state of change has impacted customer expectations and many organizations are grappling to keep up. Amidst this chaos, a few companies have found opportunities and strategies to leverage this change.

Most companies which are successful in understanding and fulfilling new-age customers’ expectations have exponentially grown and created very strong value propositions and brands in the minds of the customers.
Some proponents of change defining the business ecosystem today are big data, cloud computing, mobile and content. Digital Marketing as a science, art or technique sits right in-between all of these factors. Is digital marketing complex and difficult to understand? Is it a type of marketing that only large companies with large budgets can afford to execute? Read on to find out.

In many ways digital marketing has democratized business reach to consumers. It has presented a level playing field for small and large brands alike. This is one platform where intellect and ingenuity trumps everything else.
Applications of digital marketing are aplenty – from exploring new markets to growing a stronger brand in existing markets, all in a budget that you can decide and control in real-time.

In this day and age, the question isn’t whether you should do digital marketing, but rather, the pertinent questions are “how” and “where to start from”. Following are 5 simple things small businesses can implement to mobilize their digital marketing:

1. Website for E-Commence and Product Catalog
A website is just like a salesperson. It may need attention and hand-holding early on, but over a period of time, it becomes independent, yielding a steady stream of income. Do bear the following aspects in mind while building your website:
• Does your website have all the information that you would like your customers to know?
• Does your website provide your contact details in case the customer wants to place orders or make enquiries?
• Is it easy for the customers to navigate and find information about your brand and products?
• Is your website persuading customers to take specific actions?
• Is it easy to update information on your website?
Once you have all the content ready for your website, you can use one of the many website builders to set-up the framework. Most of these builders offer plenty of templates and customization options. In case you plan to sell your products online, some of the payment gateway companies can offer to set up the infrastructure for free. Sounds complicated? It’s not. You needn’t be a software geek to implement a fully-functional website.

2. Create local awareness about your business
It is quite possible that some of your prospective customers, even though located very close to you, may have never heard about you. Even if they have heard of you, they will resort to searching information about you on the internet.
Facebook and Google provide you with options to create local awareness and an identity on the internet. You can even place your business on Google maps to help customers locate you. All of this at little or no cost.

3. Catalyze word of mouth with referral schemes
Very few marketing campaigns can outshout the voice of a customer operating as a brand ambassador. While social media can intensify word of mouth, it takes experimentation and genius to go viral.
Win-win referral schemes help you achieve similar results with greater certainty.
There are plenty of plug and play tools which can help set-up referral schemes, leverage your customer’s social network and give your brand a fair chance of going viral. You can track and manage these schemes on the go. Much like your website, these tools are very easy to implement.

4. Advertise on Digital Media
It would be wise to advertise online if a good portion of your customers reside on the internet. Digital advertising unlike conventional advertising is highly targeted and permits small spends. You can choose from promoting your brand in existing markets to exploring new opportunities in new locations, all at the click of a button. And the good news is, all major online advertising platforms provide advertisers with account managers to help them set-up and run marketing campaigns. If you are lucky, you may even find free coupons to run your campaigns.

5. Email-Marketing to connect with your customers
Emails are a very convenient and effective way of communicating to your customers. You can use emails to inform your customers about new products, features and offers. Free guides and manuals can help your customers use your product better.

E-mail provides for two-way communication; feedback enables you to know if your email was received with a smile or a frown.

Much like this blog, you will find plenty of guides, free tools and services that can help you execute digital marketing. It may be tempting to do all of the above or possibly more to join the digital business bandwagon, but begin by evaluating your options and strategizing accordingly. If executed well, one or two targeted options are likely to provide better results rather than a scatter-gun approach.

Hope these points demystified digital marketing for you. So go on, roll up your sleeves and get ready to build a business without boundaries.

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Samarth is a marketing professional with expertise in Digital Marketing. Lead generation, customer engagement & retention, brand building and people development are some of his areas of interest. During his leisure he likes hanging out with friends & family, riding his bike to nearby destinations (sometimes even without a destination), watching movies​ ​​and reading.

​Samarth is a Marketing Manager at Capital Float.​

Oct 24, 2018