MarieLovesFinance

  While e-commerce giants dominate headlines, India's kirana stores quietly move 10 times more goods daily through their modest establishments. These micro-enterprises employ over 40 million Indians but have historically been excluded from formal financial systems. The shopkeeper loan revolution is changing this narrative, creating a more level playing field in India's retail sector. Understanding the Shopkeeper's Financial Ecosystem A typical small retailer's capital needs fall into three distinct categories that require different financing approaches. Working capital (50-70% of needs) fuels daily operations and inventory replenishment. Growth capital (20-30%) enables equipment purchases and store upgrades. Emergency funds (10-20%) provide cushions for unexpected expenses. Traditional lenders focus almost exclusively on asset-backed growth loans, completely missing the critical working capital component that keeps shops running day-to-day. Breaking Down Financial Barri...

The integration of artificial intelligence (AI) into lending practices is revolutionizing how banks and NBFCs assess risk, prevent fraud, and interact with customers. By replacing outdated, manual processes with data-driven algorithms, financial institutions are achieving unprecedented levels of efficiency and accuracy. This article examines AI’s transformative impact on lending, from credit scoring to collections, and highlights Poonawalla Fincorp’s pioneering efforts in this space.   Rethinking Credit Assessment with AI   Traditional credit scoring models often fail to capture the financial realities of thin-file or new-to-credit borrowers. AI bridges this gap by analyzing alternative data points, including digital transaction histories, utility bill payments, and even psychometric evaluations. For example, a freelancer with irregular income but consistent savings patterns may now qualify for a loan based on AI’s holistic risk assessment. Machine learning models co...