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CGTMSE launches Udaan portal: To increase Credit Guarantee Scheme
Posted on: 27/Aug/2020 9:08:17 AM
Udaan portal is a digital platform for Micro and Small Enterprises (MSEs) looking forward to applying for collateral-free loans wherein the portal gives Provisional Guarantee Certificate to avail collateral-free loans from their preferred Banks/Non-Banking Financial Companies (NBFCs). The portal’s main objective is to provide an impetus to credit in the financial ecosystem of India.
Shri Mohammad Mustafa, IAS, Chairman, and Managing Director, SIDBI, launched the Udaanportal today in a web-based program which was attended by more than 40 Lending Institutions. CGTMSE is delighted to share that there shall be no upfront fees/payment to be made by MLIs for getting onboarded on Udaan portal.
Speaking of the occasion, Shri Mustafa said, “Guarantee basically has been a back-ended product as the guarantee is issued after sanction of loan. We wanted to change it by creating a platform whereby entrepreneurs see their suitability for guarantee-based loan products from various MLIs. CGTMSE does some value addition on the selection of eligible borrowers and then send the entrepreneurs to banks / NBFCs for financial assistance with the provisional guarantee.”
Shri Mustafa expressed confidence that this could be a game-changer as it has been internationally in countries like Korea, Malaysia, the United States of America, etc. He also called upon all the MLIs to popularize the portal as ultimately it is in their hands to increase coverage of entrepreneurs coming out of the portal. Shri Mustafa emphasized that especially in the COVID-19 era, this is a very good tool to help and equip entrepreneurs to reach out to lenders to meet their financial needs.
Majority of the data required by MLI for credit decisions are collated through the Udaan portal and sent across to banks for faster turn-around time (TAT) and quick sanctions. MLIs are provided with an option to create multiple products, in accordance with their internal credit policies. Upon creation of these products, the portal shall automatically do the matchmaking at the back end and provide MLI with the filtered leads matching their product parameters.
The ‘Udaan’ portal has already onboarded 35 MLIs who are going to be part of this milestone portal. With such an exhaustive list of public sector banks, private sector banks, and NBFCs, applicants shall have the varied option to avail credit backed by CGTMSE’s guarantee. Being a digital journey, there shall be a seamless flow of data to MLI selected by the applicant without any physical intervention. The journey where borrowers shall log in, submit their consent-based details, and based on their eligibility, a Provisional Guarantee Certificate will be issued, and the application would be transferred to the MLIs selected by the applicant. MLI may thereafter carry out their due-diligence process for a final decision on the sanction of loan.
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