Strengthening SME Lending with Multi GSTIN

28th September 2020

Author: Harsh Gaurav - Manager, Customer Success. Co-author: Ramanujam V R - Customer Success Specialist

The turmoil in global markets has impacted multiple sectors with expected losses ranging from moderate to even significant. Ravi has manufacturing units of packaging materials in 9 states in India. Ravi's organisation is one amongst many of the banks' MSME customers who run their operations from various locations in India. Having operations severely impacted in 5 states, he reached out to bank(s) seeking immediate help for the survival of his business and was faced with an uphill task of convincing a growing list of circumspect lenders of his credit-worthiness under the prevailing business climate.

Given that banking transactions have been the backbone for any decisioning for lending, it is axiomatic that underwriters have installed more stringent processes to curb fraudulent attempts by borrowers and avoid high-risk decisions, especially for small businesses.

The bank decided to evaluate Ravi’s business as a pan India operation to get a comprehensive view of his financials, i.e. evaluate Multiple GSTINs. GSTIN data gives a granular insight on business transactions and has evolved as one of the most important sources of key data points for credit risk assessment. It provides detailed overview of cash flow, turnover of the entity, related parties & other key insights for a multi-dimensional assessment of a borrower’s creditworthiness. 

The ask of the time is to derive deeper insights into the business spread across India, and not restricting to locales or singular geo-specific data. It calls for smarter and robust piece of technology hardened over time that goes beyond traditional credit risk assessment methodologies. Time being of essence, Ravi's potential lender looked at Perfios for the solution. 

 

Tailor-made, Real time digital underwriting with Multi-GSTIN: PAN India Business

Already onboarded with few major banks and NBFCs, the Multi-GSTIN Analysis has compressed the manhours involved in processing, consolidation, and curation of GST data, reducing it by one-third. Our clients have also indicated that total loan application processing time has also reduced by almost one-third of the total man days. 

Not to mention, the time saved, effective cost savings the fact that automation eliminates the stress of manual processing and hence the scope for error. 

Multiple POCs conducted with few large private sector banks besides NBFCs facilitated us with critical inputs to come up with the final design of the digital reports. With this innovation, we are proud to add another arrow in the arsenal of the lenders.

When used in conjunction with our marquee product, the Bank Statement Analyzer, Multi-GSTIN Analysis is expected to bring a sigh of relief to our customers while disbursing loans, and the MSMEs can look out for their survival and/or expansion of their businesses.

Ravi is a happy man today, having resumed operations in full throttle across locations. The timely infusion of capital has secured his companies and employee’s future and is looking forward to the economy picking up.

To explore our entire business income analysis portfolio, see Income Analysis. Enquire about our GST Analysis offering. 

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