Merchants crack QR code to secure loans from NBFCs

The growth of QR code-led digital payments is boosting unsecured merchant loans by non-bank lenders, bringing hundreds of small businesses into the fold of formal credit at a time when mainstream banks are rather circumspect about expanding uncollateralised loan books.

Non-banking finance companies (NBFC) such as Aditya Birla Finance (ABFL), L&T Finance, Poonawala Fincorp, and SMFG India Credit are among those extending credit to small businesses, harnessing the technology backbone offered by payment firms such as BharatPe, Paytm and PhonePe.

As…