The step was taken by the loan startup after understanding the weak points of microenterprises, the digital credit facility will offer instant loans with an in-fine repayment facility and COVID protection insurance.

The coronavirus outbreak has also affected around a quarter of India’s 69 million MSMEs today. The digital credit facility is specially developed to address the working capital issues of Indian micro businesses during the foreclosure period. This will allow them to easily access capital at Rs. 25,000 and Rs. 50,000 with repayment in fine after 6 months. The ML-based lender has further bolstered the offer with COVID-19 protection insurance, in which the full loan waiver is extended to those infected with the coronavirus, the startup said in an official statement.

Manish Khera, Founder and CEO of HAPPY, said: “The COVID-19 outbreak has profoundly affected the cash flow of all businesses large and small. Perhaps the economic shockwaves have been felt the most by micro and small businesses and they are in dire need of financial help. Our customers are the lifeline of society and the economy – the grocer, the restaurateur, the saloon boss, the money transfer point right next to you, the farmer providing milk, an agent banking facilitating the transfer of direct benefits which, even in this period of health, fear and uncertainty should remain open and provide essential services. We spoke to over 300 such MSMEs to understand their immediate financial and health needs. Based on the feedback, we quickly turned to designing a single product – the lockdown loan with comprehensive insurance coverage against COVID ”

The digital lending platform proactively interacted with nearly 300 MSMEs via a survey to understand their feelings and weaknesses. The Lockdown Loan was designed and developed on the basis of the survey results to empower micro-entrepreneurs in these difficult times.