ITSL partners with Flexiloans, others to fulfil MSMEs short-term capital needs
India Transact Services Limited (ITSL) is an omnichannel merchant digital payment solutions company which has now tied up with three online Fintech companies- FlexiLoans, Capital Float, and Arthimpact. This move strengthens ITSL’s merchant acquisition portfolio through loans to micro, small and medium enterprises. The idea is to extend collateral free working capital loans to those businesses in organized and unorganized sectors that do not get serviced by banks due to strict evaluation criteria. This funding gap in India is estimated to be between $2.1 and $2.6 Trillion, by International Financial Corporation (IFC).
ITSL wants to tap this opportunity through its pan India presence in 700 cities, through sales and distribution network. Through partnering with Fintech companies like FlexiLoans, small businesses can avail loans based on their transactions on Ongo terminals. ITSL, through these digital platforms, is offering an alternative lending model as a value-added service to the qualifying Ongo POS merchant.
According to ITSL’s Sunil Khosla, Executive Vice President, Sales & Marketing, the union budget has also created a positive environment for Fintech companies in the digital sphere. This will, in turn, give a big push to MSMEs sector which contributes 8% of GDP, 40% of exports and 45% in manufacturing output. FlexiLoans and such other Fintech companies have simplified the loan process which takes only 48 hours, is executed entirely online with no paperwork and hassle-free loan approval.