iSPIRT, in partnership with UGRO Capital, IIFL, and GetVantage, has launched the Priority Sector Lenders Association of India (PSLAI). This initiative aims to transform the landscape of priority sector lending (PSL) by leveraging digital tools like the Open Credit Enablement Network (OCEN) to make credit access for MSMEs more efficient and borrower-friendly.
PSL is a regulated initiative by the Reserve Bank of India (RBI), which mandates banks to allocate a portion of their lending to sectors like MSMEs. PSLAI is designed to streamline this process through OCEN’s interoperable framework. It allows MSMEs to upload digital transaction data—like marketplace invoices—onto a platform, enabling them to access credit instantly from multiple lenders.
GetVantage Founder Bhavik Vasa highlights how the initiative uses technology to move from a lender’s market to a borrower’s market. By analyzing real-time transactional data, GST filings, and bank credits, platforms like GetVantage can offer quick, accurate credit assessments, sidestepping the need for traditional, lengthy evaluations.
This shift is possible because of the crucial role data collection plays. Platforms like Government e-Marketplace (GeM) and GrowthSahay integrate with GetVantage, enabling MSMEs to leverage their transaction history to obtain loans. GetVantage’s classification of financing deals into four profiles—ranging from traditional methods to fully digital models—further enhances flexibility and efficiency.
The digital consent process through OAuth ensures that MSMEs can grant permission for access to their financial data securely, removing the need for manual submissions. With OCEN, businesses benefit from automated, real-time credit assessments, making financing faster and more accessible.
GetVantage’s business model as a “capital gateway” connects lenders with MSMEs, enabling both parties to share in the value generated, much like platforms such as Uber. This model emphasizes collaboration and efficiency, allowing lenders and borrowers to engage in seamless, data-driven transactions.
As the RBI’s Unified Lending Interface (ULI) looks to digitize the credit process, initiatives like PSLAI are critical in closing the gap between supply and demand for credit in India’s MSME sector. This digital-first approach is a significant step toward enabling more inclusive financial growth, especially for small businesses.
This article was originally published in MediaNama.
