Digital Lending (MSME)

Digital lending products, LSP & its DLA, & Nature of services availed from LSP

A. Revolving Credit

A flexible working capital solution that allows businesses to withdraw funds as needed within an approved credit limit and repay/reuse the limit multiple times during the tenure.

Key Features

• Pre-approved credit limit for ongoing business needs
• Withdraw funds anytime through a digital platform
• Interest charged only on utilized amount
• Flexible repayment and redraw facility
• Quick approvals with minimal documentation
• Ideal for managing cash flow gaps and seasonal requirements

Benefits

• Improves liquidity management
• Reduces idle borrowing costs
• Enables uninterrupted business operations
• Faster access to funds compared to traditional loans
• Supports short-term operational expenses

Eligible Usage

• Vendor payments
• Inventory purchase
• Other working capital requirements

Eligibility Criteria

• Registered business entity
• Minimum business vintage as per lender policy
• Stable banking and financial track record
• Satisfactory credit profile

Documents Required

• KYC documents
• Business registration proof
• Bank statements
• Financial statements / GST returns
• Income tax returns

B. Bill Discounting

A short-term financing solution that enables businesses to unlock immediate funds against unpaid invoices raised on customers.

Key Features

• Instant liquidity against approved invoices
• Financing based on receivables from buyers
• Short-tenure funding option
• Digital invoice upload and processing
• Flexible financing limits based on invoice value

Benefits

• Improves working capital cycle
• Reduces waiting period for customer payments
• Helps maintain healthy cash flow
• Enables timely supplier and operational payments
• No need to wait until invoice maturity

Eligible Usage

• Managing operational expenses
• Supplier payments
• Business expansion needs
• Inventory replenishment

Eligibility Criteria

• Active B2B business operations
• Valid trade invoices
• Approved buyers/customers
• Healthy transaction history

Documents Required

• Invoice copies
• Purchase orders / delivery proofs
• Bank statements
• GST returns
• KYC and business documents

C. Raw Material Finance

A financing solution designed to help businesses procure raw materials and maintain uninterrupted production cycles.

Key Features

• Funding support for raw material procurement
• Credit available for multiple purchase cycles
• Flexible repayment aligned with business cash flows
• Financing for domestic and imported raw materials
• Quick digital processing and disbursement

Benefits

• Ensures uninterrupted production
• Improves inventory planning
• Strengthens supplier relationships through timely payments
• Reduces pressure on working capital
• Helps businesses capitalize on bulk purchase opportunities

Eligible Usage

• Purchase of raw materials
• Procurement from approved suppliers
• Import financing requirements
• Inventory stocking during peak demand periods

Eligibility Criteria

• Manufacturing or trading business
• Established supplier network
• Stable operational track record
• Satisfactory financial performance

Documents Required

• Supplier quotations / invoices
• Bank statements
• GST and financial statements
• KYC documents

Fees & Charges of Digital lending products (Business Loans)

List of Documents Required from Borrower for Loan Application Processing

• Photo ID Proof — All Directors / Partners / Proprietor
• Address Proof — Registered Office
• Certificate of Incorporation / Partnership Deed / Registration Certificate
• PAN Card (Company + All Directors / Partners)
• GSTIN Certificate, if applicable
• Udyam / MSME Certificate (if applicable)
• Audited Financial Statements — Last 2 Years, if applicable
• Bank Statements — Last 12 Months
• KYC of Co-Borrower(s) — as listed in application
• KYC of Personal Guarantor(s) — as listed in application