CHAPTER NO.

1
INTRODUCTION

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 INTRODUCTION:
Access to finance has been a long-standing challenge for small vendors and
the middle class, hindering their ability to grow their businesses and achieve
financial stability. Traditional financial institutions often have stringent
eligibility requirements that small vendors and middle-class individuals
cannot meet, making it difficult for them to obtain loans and investments.
However, the rise of digital platforms has made it possible to bridge this gap
and offer affordable and accessible financial solutions.

The purpose of this research is to explore the development and impact of a

loan and investment platform designed to empower small vendors and
middle-class individuals. The platform aims to provide access to finance,
reduce the financial exclusion of small vendors, and offer investment
opportunities to middle-class individuals.

This research will investigate the platform’s structure, operations, and

services, as well as its impact on small vendors and middle-class investors.
The study will also analyze the challenges and opportunities that arise from
operating such a platform, including regulatory compliance, risk
management, and customer acquisition.

Overall, the research seeks to provide insights into the potential of digital
platforms to create financial inclusion and opportunities for small vendors
and middle-class individuals. The findings of this study could inform
policymakers, financial institutions, and entrepreneurs on the development
of innovative financial solutions that benefit a broader range of society.

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 What this platform about it?

Is a financial platform that provides affordable and accessible loans to

small-scale vendors and investment opportunities to middle-class
individuals. It is designed to address the financial needs of two important
groups in society who often face challenges in accessing formal financial
services.

The platform offers flexible loan options to small-scale vendors who often
have limited access to credit and are forced to rely on informal sources of
finance such as moneylenders. These vendors can apply for loans through
the platform and receive funds in a timely and efficient manner, without
having to go through the hassle of dealing with traditional financial
institutions.

In addition to loan services, the platform also offers investment

opportunities to middle-class individuals who may have savings but are
unsure of where to invest them. By providing a secure and reliable
investment channel, the platform can help individuals grow their savings
and earn attractive returns, while also supporting the growth of small-scale
businesses and entrepreneurs.

Overall, the loan and investment platform serves as a bridge between small-
scale vendors and middle-class investors, connecting these two groups in a
mutually beneficial way. By offering affordable loans and secure investment
opportunities, the platform can help support economic growth and financial
inclusion in society.

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 How it will work for Small scale vendors?

This platform can work by providing them with access to affordable loans
and financial education. The process for applying for a loan would involve
submitting an application through the platform and providing information
about the vendor’s business and financial situation. Once the application is
submitted, the platform would review the information and determine
whether the vendor qualifies for a loan. If approved, the vendor would
receive the loan funds and begin making repayments according to the terms
of the loan agreement.

In addition to providing loans, the platform would also offer financial

education to help small vendors improve their financial literacy and
management skills. This could include resources such as financial planning
tools, budgeting guides, and training on best practices for managing cash
flow and expenses. By providing these resources, the platform can help
small vendors build financial resilience and stability, which can enable them
to grow their businesses over time.

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 How it will work for Small scale investors?

From this loan and investment platform as it provides them with a

convenient and secure platform to invest their money. By joining this
platform, investors can gain access to a range of investment options, from
low-risk to high-risk, and select the option that suits their investment goals
and risk appetite.

To get started, investors can register on the platform and create their
investment profile. They can then browse through the available investment
options, read about the features and risks of each option, and select the one
that suits their needs. Once they have selected an investment option, they
can invest their money through the platform and monitor their investment
performance in real-time.

Investors can also benefit from the platform’s advanced security features,
which help protect their investments from fraud and other security threats.
The platform uses state-of-the-art encryption and security protocols to
ensure that all transactions are secure and that investors’ personal and
financial information is protected.

Overall, this loan and investment platform provides small-scale investors

with a convenient, secure, and flexible way to invest their money and
achieve their financial goals.

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 How it will beneficial for small scale vendors?

Firstly, you will have access to quick and convenient loans with affordable
interest rates, which can help you meet your business needs and expand your
operations. You will also be able to easily track your loan application status
and manage your loan repayments through the platform’s user-friendly
interface.

Moreover, by joining the investment platform, you can invest your savings
in a range of carefully selected investment products that match your risk
profile and financial goals. This can provide you with an additional source
of income and help you build your financial portfolio.

Furthermore, as part of a larger community of vendors and investors, you

will have access to valuable networking opportunities and resources that can
help you grow your business and make informed investment decisions.
Overall, this platform can help you achieve your financial aspirations and
enhance your financial wellbeing.

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 How it will beneficial for small scale Investors?

Firstly, the platform provides them with a transparent and easy-to-use

platform to invest in various financial products, which can diversify their
portfolio and potentially generate higher returns. Secondly, the platform
offers personalized investment advice and support, which can help investors
make informed decisions and mitigate their investment risks. Thirdly, the
platform enables investors to track their investments in real-time and
manage their portfolio online, which can save them time and reduce
administrative costs. Additionally, the platform provides investors with
access to a broader range of investment opportunities that they may not have
been able to access otherwise, thus helping them achieve their financial
goals.

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 Role of Government in this platform :

As an investor or small vendor, you may wonder about the role of the
government in this platform. The government can play a significant role in
promoting and supporting the development of innovative financial solutions
like this platform. It can provide funding, resources, and regulatory support
to ensure the platform’s sustainability and effectiveness. Additionally, the
government can also facilitate partnerships between financial institutions
and small vendors to increase access to financial services and improve
financial literacy. You can also play a role by advocating for policies and
regulations that promote financial inclusion and entrepreneurship.

The government's role in the peer-to-peer lending platform can vary

depending on the specific platform and the country where it operates. In
some cases, the government may be involved in creating the legal
framework and regulations that govern the platform, ensuring that it
operates within the bounds of the law and is fair to all parties involved .

The government may also provide financial support or incentives to promote

the use of the platform among small-scale vendors and investors. For
example, the government could offer tax credits or subsidies for those who
invest through the platform, or provide funding for the platform to expand
its services to underserved areas.

Additionally, the government may play a role in ensuring the security and
stability of the platform. This could involve establishing a deposit insurance
program or creating a contingency fund to provide financial support in the
event of a crisis.

Overall, the government's role in the platform is to support its growth and
development while ensuring that it operates in a fair and transparent manner
and provides benefits to all parties involved

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 Avenues for small vendors :

1. Easy access to loans: The platform offers easy access to loans for small
vendors, which they can use to start or grow their business. The loans are
provided at affordable interest rates and with flexible repayment options.

2. Quick loan disbursal: The loans are disbursed quickly, enabling small
vendors to access funds when they need them the most.

3. No collateral required: The platform offers unsecured loans, which means

that small vendors do not have to provide any collateral or security to avail
of the loans.

4. Transparent processes: The platform operates with complete transparency,

ensuring that small vendors are aware of all the terms and conditions of the
loans.

5. Minimal documentation: The platform requires minimal documentation,

making the loan application process simple and hassle-free for small
vendors.

6. Education and training: The platform also provides education and training to
small vendors, helping them to manage their finances better and grow their
business.

7. Networking opportunities: The platform provides networking opportunities

to small vendors, enabling them to connect with other vendors and explore
new business opportunities.

8. Technology-enabled solutions: The platform leverages technology to provide

solutions that are efficient and cost-effective for small vendors.

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Overall, the platform provides a comprehensive range of services to small
vendors, helping them to overcome the challenges of accessing finance and
grow their businesses.

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 Investment avenues for small scale investors

1. Investment in small-scale vendors: Investors can use this platform to invest

in small-scale vendors who require funding for their businesses. This avenue
enables investors to support the growth of small businesses while earning a
return on their investment.

2. Direct lending to small-scale vendors: Investors can also lend money

directly to small-scale vendors through this platform. This avenue offers
investors the opportunity to earn interest on their investment while
providing much-needed funding to small businesses.

3. Investment in government-backed schemes: The platform will provide

access to government-backed investment schemes that offer attractive
returns. Investors can use this avenue to earn a secure return on their
investment while supporting government initiatives to promote
entrepreneurship and small business growth.

4. Equity investment in startups: The platform will provide access to equity

investments in startups, which can offer high potential returns for investors.
This avenue enables investors to support innovative startups while
potentially earning significant returns on their investment.

5. Investment in mutual funds: The platform will also provide access to a

variety of mutual funds that offer diversified investment portfolios. This
avenue enables investors to benefit from professional portfolio management
while potentially earning attractive returns.

6. Overall, the platform offers a wide range of avenues for investors to invest
in various asset classes, from small businesses to mutual funds, offering
potential for attractive returns and supporting entrepreneurship and small
business growth.

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 What do you mean by small vendors?

Small vendors refer to businesses that operate on a small scale, typically

with a limited number of employees, low turnover, and fewer resources.
Small vendors can vary in terms of their products, services, and target
customers.

The definition of small vendors can vary depending on the country and the
industry. In the United States, for example, the Small Business
Administration (SBA) defines small businesses based on the number of
employees and annual revenue. For most manufacturing and mining
industries, a small business is defined as having fewer than 500 employees,
while for most non-manufacturing industries, a small business is defined as
having annual revenues of less than $7.5 million.

1. Micro-enterprises: These are businesses with fewer than five employees,

and often operate in the informal sector. Examples include street vendors,
hawkers, and small-scale farmers.

2. Sole proprietorships: These are businesses owned and operated by a single

individual, who is responsible for all aspects of the business, including its
finances and legal obligations. Examples include freelance writers,
consultants, and artists.

3. Partnership firms: These are businesses owned by two or more partners,

who share the profits and losses of the business. Examples include law
firms, accounting firms, and medical practices.

4. Small and medium-sized enterprises (SMEs): These are businesses with

fewer than 250 employees and annual revenues of less than €50 million.
SMEs are often seen as engines of economic growth, and can be found in a
wide range of sectors, including manufacturing, retail, and services.

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 What do mean by small investor?

Small investors are individuals who invest a relatively small amount of

money in financial markets, as opposed to institutional investors who invest
large sums of money on behalf of organizations or groups. Small investors
are typically retail investors who invest their own money, rather than
institutional investors who invest on behalf of clients or organizations.

Small investors can include anyone who invests small amounts of money in
stocks, bonds, mutual funds, or other financial instruments, with the goal of
generating a return on their investment. This can include individual
investors, self-employed individuals, and small business owners who are
looking to grow their wealth over time.

There are several types of small investors, including:

1. Novice investors: These are new investors who are just starting out and may
not have a lot of knowledge or experience in investing.

2. Passive investors: These are investors who prefer to invest in low-risk, long-
term investments and prefer to leave their investments untouched for an
extended period of time.

3. Active investors: These are investors who are more involved in the day-to-
day management of their investments and may engage in more frequent
buying and selling of securities.

4. Value investors: These are investors who look for undervalued securities
and invest in them with the hope that they will increase in value over time.

5. Growth investors: These are investors who invest in companies with strong
growth potential, with the hope that their investment will grow in value as
the company expands.

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 Importance of this platform

This platform is very important as it provides a solution to a real-world

problem faced by both small vendors and investors. It offers a new and
innovative way for small vendors to access much-needed loans without
having to resort to the high-interest rates charged by traditional
moneylenders. This can help to alleviate the financial burden on small
vendors, allowing them to focus on growing their businesses and
contributing to the local economy.

Additionally, this platform provides investors with a new avenue to invest

their money, one that is transparent, secure, and potentially very profitable.
By investing in small vendors, investors can help to support local
communities and foster economic growth, while also earning a return on
their investment.

Furthermore, this platform has the potential to bring significant benefits to

society as a whole. By providing a safe and reliable way for small vendors
to access loans, it can help to reduce poverty, increase financial inclusion,
and promote economic development. At the same time, by providing
investors with a new and potentially lucrative way to invest their money, it
can help to attract much-needed investment capital to small businesses and
spur innovation and growth.

Overall, the importance of this platform lies in its ability to address a real-
world problem and bring significant benefits to both small vendors and
investors, as well as to society as a whole.

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 Difference between old platforms and this new platform :

 Old Platforms:

1. Traditional banking and lending systems with stringent criteria and

collateral requirements:
Traditional banking and lending systems have rigid eligibility criteria that
require extensive documentation, collateral, and credit checks. This made it
difficult for small-scale vendors and investors who may not have the
necessary assets to secure a loan. These stringent criteria made it almost
impossible for many people to access credit.

2. High-interest rates and inflexible repayment options:

The interest rates on traditional loans are often high, making it challenging
for borrowers to repay the loan within a short time frame. The repayment
options were often inflexible, which left borrowers struggling to keep up
with the payments.

3. Limited access to credit for small-scale vendors and investors:

Traditional lending systems have always been biased towards established
businesses or individuals with good credit scores. Small-scale vendors and
investors, particularly in under-served areas, often struggled to access credit.

4. Lengthy application processes and time-consuming approval

procedures:
Applying for a loan in a traditional lending system was often a time-
consuming process that required extensive documentation, credit checks,
and a review of collateral. It could take weeks or even months to get
approval for a loan.

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5. Lack of transparency in loan processing and disbursement:
Traditional lending systems were often opaque and lacked transparency in
loan processing and disbursement. Borrowers often had to wait for long
periods without knowing the status of their loan application.

 New Platform:

1. Digitally-enabled peer-to-peer lending platform with flexible eligibility

criteria and simplified documentation:
Peer-to-peer lending platforms have revolutionized lending by providing a
digital platform that allows borrowers to connect with lenders directly.
These platforms have flexible eligibility criteria that are less stringent than
traditional lending systems, and the documentation required is simple and
straightforward.

2. Competitive interest rates and customizable repayment options:

Peer-to-peer lending platforms often offer competitive interest rates that are
lower than traditional lending systems. Additionally, borrowers can choose
from a variety of repayment options that best suits their financial situation,
including flexible repayment schedules.

3. Increased access to credit for small-scale vendors and investors,

particularly in under-served areas:
Peer-to-peer lending platforms provide an opportunity for small-scale
vendors and investors, particularly in under-served areas, to access credit.
These platforms offer an alternative to traditional lending systems that often
exclude small-scale borrowers.

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4. Quick and efficient online application and approval procedures:
Peer-to-peer lending platforms provide quick and efficient online
application and approval procedures. Borrowers can apply for loans

online and get approval in a matter of hours, significantly

reducing the time it takes to access credit.

5. Transparent and secure loan processing and disbursement:

Peer-to-peer lending platforms are transparent and secure in their loan
processing and disbursement. Borrowers can track the status of their loan
application and see the progress of their loan disbursement. Additionally,
these platforms use advanced encryption technology to secure borrowers’
personal and financial information.

 Firstly, the old platforms were typically operated by traditional financial

institutions like banks and credit unions, whereas the new platform is more
likely to be operated by fintech companies or other online lenders. This
means that the new platform can leverage technology to offer a more
streamlined and efficient user experience compared to the traditional
banking platforms.

 Secondly, the old platforms tended to have stricter requirements for

borrowers and investors, such as high credit scores, significant collateral,
and extensive documentation. The new platform, on the other hand, may be
more lenient with these requirements, making it easier for small vendors and
middle-class investors to access funding.

 Thirdly, the old platforms were often more focused on serving large
businesses or high net worth individuals, while the new platform is designed
to serve the needs of small vendors and middle-class investors specifically.
This means that the new platform may offer more tailored services and
support for these groups.

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Overall, the new platform represents a shift towards a more inclusive and
accessible financial system, leveraging technology to make lending and
investing more efficient and user-friendly for small vendors and middle-
class investors.

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 Factors that can affect this type of platform:

1. Economic conditions: Economic factors such as inflation, interest rates, and

unemployment can have an impact on the demand for loans and the ability
of borrowers to repay them.

2. Regulatory environment: Changes in the regulatory environment, such as

new laws or regulations governing the lending industry, can impact the
platform’s operations and profitability.

3. Technological advancements: Advancements in technology can lead to new

opportunities for the platform to improve its services, but also pose a risk if
it fails to keep up with emerging technologies or cybersecurity threats.

4. Market competition: The emergence of new competitors or changes in

market conditions can affect the platform’s ability to attract borrowers and
investors, as well as its pricing and profitability.

5. Reputation and trust: The platform’s reputation and trustworthiness are

crucial for attracting borrowers and investors. Any negative news or
perception of the platform can harm its business and growth potential.

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 If this platform run by Government than how it will look?

If this platform is run by the government, the revenue model may be

different compared to a privately owned platform. In the case of a
government-owned platform, revenue may be generated through taxes,
transaction fees, or other government revenue streams. Alternatively, the
government may not be focused on generating revenue from the platform
and may instead prioritize its social and economic impact on society. It is
important to note that the specific revenue model for a government-owned
platform may vary depending on the policies and regulations of the
government in question.

 If government run this platform how it’s aspects will be

affected?

1. Funding: The government will have to allocate funds for the development
and maintenance of the platform.

2. Regulation: As the platform will be run by the government, there will be

regulations and policies to ensure the smooth functioning of the platform.
This may affect the way the platform operates and the services it provides.

3. Efficiency: As the government may have more resources, the platform may
be more efficient and effective in providing services to small-scale vendors
and investors.

4. Trust: As the government is a trusted entity, the platform may instill more
trust in the users, as compared to a privately owned platform.

5. Political Interference: However, there is also a possibility that political

interference may affect the platform’s operations and services.

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 Why people will choose this platform?

1. Lower interest rates: As this platform is run by the government, it may

offer lower interest rates compared to traditional banks and other lending
platforms. This can make borrowing more affordable for small vendors and
investors.

2. Increased access to credit: The platform may provide greater access to

credit for small-scale vendors and investors, particularly in under-served
areas where traditional lenders may be less willing to lend.

3. Flexible eligibility criteria: The platform may have more flexible eligibility
criteria compared to traditional lenders, allowing a wider range of small
vendors and investors to qualify for loans.

4. Simplified documentation: The platform may require less documentation

and have simpler application procedures compared to traditional lenders,
making the loan application process quicker and more efficient.

5. Transparent and secure processing: The platform may offer more

transparent and secure loan processing and disbursement, which can give
borrowers greater confidence in the lending process.

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 Affecting factors

1. Economic conditions: Economic factors such as inflation, interest rates, and

unemployment can have an impact on the demand for loans and the ability
of borrowers to repay them.

2. Regulatory environment: Changes in the regulatory environment, such as

new laws or regulations governing the lending industry, can impact the
platform’s operations and profitability.

3. Technological advancements: Advancements in technology can lead to

new opportunities for the platform to improve its services, but also pose a
risk if it fails to keep up with emerging technologies or cybersecurity
threats.

4. Market competition: The emergence of new competitors or changes in

market conditions can affect the platform’s ability to attract borrowers and
investors, as well as its pricing and profitability.

5. Reputation and trust: The platform’s reputation and trustworthiness are

crucial for attracting borrowers and investors. Any negative news or
perception of the platform can harm its business and growth potential.

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 Why we need this platform?

The need for a platform like peer-to-peer lending arises from the limitations
of traditional banking and lending systems. Small-scale vendors and
investors often struggle to access credit due to strict eligibility criteria,
collateral requirements, high-interest rates, and inflexible repayment
options. Additionally, the lengthy application and approval procedures of
traditional banking systems can be time-consuming and often lead to delays
in obtaining necessary funds.

On the other hand, peer-to-peer lending platforms provide a digitally-

enabled alternative that is flexible, efficient, and transparent. With lower
eligibility criteria, customizable repayment options, and quick online
application and approval procedures, these platforms have increased access
to credit for small-scale vendors and investors, particularly in under-served
areas. The need for such a platform is therefore to bridge the gap between
the supply and demand of credit in the market, and to provide a secure and
reliable means for small vendors and investors to obtain the funds they need
to grow and succeed.

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 CHAPTER 2

RESEARCH OBJECTIVES AND

RESEARCH METHODOLOGY

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 OBJECTIVES OF THE STUDY
1. To understand the short term funds available to small scale vendors.
2. To connect the needy vendor and investor digitally.
3. To understand problem face by the small vendors and their satisfaction level
toward different investment avenues.
4. To provide solution with the help of digitalization.

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 LIMITATIONS OF THE STUDY

1. The period of study is limited.

2. People generally were reluctant to disclose information relating to their savings,

investments.
3. Limited to the small scale vendors and investors.
4. The study has a limitation of place and resources.

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 RESEARCH METHODOLOGY

Methodology in research is defined as the systematic method to resolve a research

problem through data gathering using various techniques, providing an
interpretation of data gathered and drawing conclusions about the research data.
Essentially, a research methodology is the blueprint of a research or study.

 RESEARCH DESIGN

The type of my research is applied research. This is due to the fact that it looks
into a practical problem, namely the loan and investment platform for small
businesses and middle-class people, in an effort to find a solution. With the aim of
informing policymakers, financial institutions, and entrepreneurs on the
development of novel financial solutions that benefit a wider range of society, this
research is concentrated on comprehending the structure, operations, and services
of the platform and assessing its impact on small vendors and middle-class
investors.

 SAMPLE SIZE AND TECHNIQUE

 SAMPLE AREA
Sample for the research is taken from the small scale vendors and small scale
investors from kalyan area.

 SAMPLING SIZE
The sample size consists of 100 respondents, 50 of whom are small vendors and
50 are small investors.

 DATA COLLECTION METHOD

To determine the appropriate date of for the research namely primary data as
explained below:-
 Primary data
Primary data are the those which are collected a fresh and for the first time first
happened to be original. There are other ways to gather primary data, however our
questionnaire has been the only one used for the purposes of this study. I used the
questionnaire method of data collection to gather the information.

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 TOOLS AND TECHNIQUES

 Validation of tools
The main statistical tools used for the collection and analyses of a data in this
project are: -
 Pie chart
 Table
 Chi-square
 Bar chart

 Data processing and analysis plan

With the use of an Excel sheet and a percentage, the data was processed and
analyze.

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 HYPOTHESIS OF THE STUDY

 VENDORS

1. Null Hypothesis (H0) : There is no association between gender and satisfaction

from the existing sources.

2. Alternate Hypothesis (H1) : There is association between gender and

satisfaction from the existing sources.

 INVESTORS

1. Null Hypothesis (H0): There is no association between income and Amount their
investment.

2. Alternate Hypothesis (H1) : There is association between Income and Amount

their investment.

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CHAPTER NO. 3
REVIEW OF
LITERATURE

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 “Revolutionizing Financial Inclusion for Small Vendors and
Investors”

 Introduction:
Financial inclusion has long been a challenge for small vendors and
investors, who often lack access to traditional banking services due to
limited resources, low credit scores, and informal business structures. As a
result, they are forced to turn to moneylenders and other unregulated sources
of financing, which can come with high interest rates and hidden fees.
However, a new loan and investment platform is revolutionizing the way
small vendors and investors access financial services, providing them with a
range of affordable and transparent options.

 Background:
The loan and investment platform was developed by a team of financial
experts who recognized the need for a more inclusive and accessible
financial system. They sought to create a platform that would allow small
vendors and investors to access loans and investments that were tailored to
their unique needs and circumstances. To achieve this, they worked closely
with financial institutions, policymakers, and entrepreneurs to develop a
platform that would be user-friendly, affordable, and transparent.

 Features:
The loan and investment platform offers a range of features that are
specifically designed to meet the needs of small vendors and investors.
These features include:

1. Flexible loan options: The platform offers a range of loan options that are
tailored to the specific needs and circumstances of small vendors and
investors. This includes short-term loans for working capital, medium-term
loans for business expansion, and long-term loans for major investments.

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2. Low interest rates: The platform offers some of the lowest interest rates in
the market, which helps to make borrowing more affordable for small
vendors and investors.

3. Transparent fees: The platform is transparent about its fees, which helps to
prevent hidden costs from catching small vendors and investors off guard.

4. Easy application process: The platform offers a simple and streamlined

application process that allows small vendors and investors to apply for
loans and investments quickly and easily.

5. Investment options: The platform also offers a range of investment options

that allow small vendors and investors to earn returns on their savings while
supporting small businesses.

 Impact:
The loan and investment platform has had a significant impact on the lives
of small vendors and investors. It has helped to create a more inclusive and
accessible financial system, providing them with the tools they need to grow
their businesses and build their financial futures. Additionally, the platform
has helped to boost economic growth by increasing access to capital for
small businesses, which in turn creates jobs and drives innovation.

 Conclusion:
The loan and investment platform represents a major step forward in the
quest for financial inclusion for small vendors and investors. By offering
flexible loan options, low interest rates, and transparent fees, the platform is
making it easier for small vendors and investors to access the financial
services they need to grow their businesses and build their financial futures.
As such, it represents a powerful tool for promoting economic growth and
building a more inclusive financial system.

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 ‘Digital Platforms and the Future of Small Business
Lending’

 Author: Karen Gordon Mills, Brayden McCarthy, and Wendy Guillies

 Publication: Harvard Business Review

 Date: July-August 2019

Summary: This article explores how digital platforms are disrupting the
traditional small business lending model, providing opportunities for small
businesses to access credit more easily and at lower costs. The authors argue
that digital platforms have several advantages over traditional lenders,
including faster and more efficient underwriting processes, more
personalized loan products, and access to non-traditional data sources that
can help assess creditworthiness. The authors also discuss the challenges
faced by digital platforms, such as regulatory compliance and risk
management, and highlight the need for collaboration between traditional
lenders and digital platforms to maximize the benefits for small businesses.
Overall, the article provides valuable insights into the role of digital
platforms in transforming the small business lending landscape.

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 ‘Fintech Lending: A Literature Review and Directions
for Future Research’

 Authors: Soumya Sen, Alok Kumar, Varun Malhotra

 Journal: Journal of Financial Service Research

 Year: 2019

Abstract: This article provides a comprehensive review of the academic

literature on fintech lending, which is a rapidly growing segment of the
financial services industry. The authors examine the current state of research
on fintech lending, including the underlying technologies, regulatory issues,
and the impact of fintech lending on consumers and traditional financial
institutions. The article also identifies gaps in the existing literature and
provides directions for future research in this area. Overall, the article
provides valuable insights for researchers, practitioners, and policymakers
interested in understanding the opportunities and challenges associated with
fintech lending.

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 CHAPTER NO.4
DATA ANALISIS AND DATA
INTERPRETATION

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 Are you vendor or running a business that fall’s under small
scale loan?

Particulars frequency percentage

Yes 50 50%
No 50 50%
Total 100 100%

 GRAPH:

 Observation :
From the above data it shows that,
In Kalyan area, Total 100 Respondent are collected in that 50%
are small vendors and remain 50% are small investors.

36
FOR SMALL INVESTORS

2. AGE

Particulars frequency percentage

18-25 10 20%
26-35 12 24%
36-45 22 44%
46 and above 6 12%
Total 50 100%

 GRAPH :

 OBSERVATION :

From the above Data it shows that,

In kalyan area, we taken 100 Respondent in which 50% are investors
and in that Responses are divided into four age groups, from where it
was observed that the AGE group of 36 – 45 years were largely taken
as a sample size.

37
 3. Gender

Particulars frequency percentage

Male 34 68%
Female 16 32%
Total 50 100%

 GRAPH :

 OBSERVATION:
From the above data it shows that, In kalyan area, we taken 100
Respondent in which 50% are investors and in that 68% are males and
32% are females Respondent.

38
4. What is your Occupation?

Particulars frequency Percentage

Salaried 40 80%
Business 10 20%
Total 50 100%

 GRAPH :

 OBSERVATION:
From the above data it shows that, In kalyan area, we taken 100
Respondent in which 50% are investors and in that 80% investors are
salaried and 20% investors have business.

39
 5. What is your Monthly Income?

Particulars frequency Percentage

Below 10000 2 4%
10000-25000 13 26%
26000-40000 27 54%
Above 40000 13 26%
Total 50 100%

 GRAPH:

 OBSERVATION:
From the above Data it shows that,
In kalyan area, we taken 100 Respondent in which 50% are investors
and in that they are divided into four Income groups, from where it
was observed that the Income Group of Rs. 26000 – 40000 were
largely taken as a sample size.

40
 6. Where do you invest your small savings?

Particulars frequency percentage

Invest in shares 6 12%
Invest in mutual fund and 7 14%
SIP
Kept in savings account 37 74%
Don’t invest anywhere 21 42%

 GRAPH :

 OBSERVATION:
From the above data it shows that, In kalyan area, we taken 100
Respondent in which 50% are investors and in that 74% Respondent
keeps their money in savings accounts and 42% don’t invest their
money and 14% investors are invest in mutual funds and 12%
investors are invest in shares.

41
7. Why you don’t invest your money?

Particulars frequency Percentage

Not regularity of savings 32 64%
Don’t know investing 13 13%
platforms
I Invest 11 22%

 GRAPH :

 OBSERVATION :
From the above data it shows that, In kalyan area, we taken 100
Respondent in which 50% are investors and in that 64% don’t have
regularity of savings and 26% don’t know investing platforms and
22% investors are investing.

42
8. Do you want to access to a platform that offers investing
opportunities without set payments?

Particulars frequency percentage

Yes 46 92%
No 4 8%
Total 50 100%

 GRAPH :

 OBSERVATION:
From the above data it shows that
In kalyan area, we taken 100 Respondent in which 50% are
investors and in that 92% investors wants to take this opportunity
and use this platform.

43
9. How much amount would you like to invest?

Particulars frequency percentage

Below 2000 10 20%
2100-4000 8 16%
4100-7000 26 52%
7000 and Above 6 12%
Total 50 100%

 GRAPH :

 OBSERVATION :
From the above data it shows that,
In kalyan area, we taken 100 Respondent in which 50% are
investors and in that they are divided into four Investing groups,
from where it was observed that the Investing Group of Rs. 4100 -
7000 were largely investors want to invest.

44
10. For how much time you are ready to invest your savings?

Particulars frequency percentage

For 1-7 days 10 16%
For 8-15 days 12 18%
16-21 days 22 58%
21-30 days 6 8%
Total 50 100%

 GRAPH :

 OBSERVATION :
From the above data it shows that, In kalyan area, we taken 100
Respondent in which 50% are investors and in that 58% of
investors are highly interested in 16-21 days investment.

45
For small scale vendors

11. . Age
Particulars frequency percentage
18-25 11 22%
26-35 18 36%
36-45 12 24%
46 and above 9 18%
Total 50 100%

 GRAPH :

 OBSERVATION :
From the above data it shows that,
In kalyan area, we taken 100 Respondent in which 50% are small
scale vendors and in that Responses are divided into four age
groups, from where it was observed that the AGE group of 26-35
years were largely taken as a sample size.

46
12. Gender

Particulars frequency percentage

Male 22 44%
Female 28 56%
Total 50 100%

 GRAPH :

 OBSERVATION :
From the above data it shows that, In kalyan area, we taken 100
Respondent in which 50% are investors and in that 56% are
females and 44% are males Respondent.

47
 13. From where you take short term loans?

Particulars frequency percentage

Loan from bank 10 20%
Loan from financial institute 22 44%
Loan from money lenders 37 74%

 GRAPH:

 OBSERVATION :
From the above data it shows that,
In kalyan area, we taken 100 Respondent in which 50% are small
scale vendors and 74% vendors take loan from Moneylenders.

48
14. From which source do you take short term loans?

Particulars frequency percentage

Organized 21 42%
unorganized 37 74%

 GRAPH :

 OBSERVATION :
From the above data it shows that, In kalyan area, we taken 100
Respondent in which 50% are small scale vendors and in that 74%
small scale vendors are taking loan from unorganised sector.

49
 15. How long accomplish you need a loan for the short term?
Particulars frequency percentage
For 1-7 days 2 4%
For 8-15 days 24 48%
For 16-21 days 19 38%
21- 30 days 5 10%
Total 50 100%

 GRAPH :

 OBSERVATION :
From the above data it shows that, In kalyan area, we taken 100
Respondent in which 50% are small scale vendors and in that 48%
small scale vendors want 8-15 days loan.

50
16. What amount do you require as a loan for the short term?

Particulars Frequency Percentage

1000-2000 6 12%
2100-4000 16 32%
4100-7000 21 42%
7100 and above 7 14%
Total 50 100%

 GRAPH:

 OBSERVATION :
From the above data it shows that,
In kalyan area, we taken 100 Respondent in which 50% are small
scale vendors and in that responses are divided into four groups
and it was observed that group 4100-7000 are largely wanted to
small scale vendors.

51
17. Are you satisfied with the current loan services or resources?

Particulars frequency percentage

Yes 15 30%
No 35 70%
Total 50 100%

 GRAPH:

 OBSERVATION :
From the above data it shows that, In kalyan area, we taken 100
Respondent in which 50% are small scale vendors and in that 70%
small scale vendors are not satisfied from current resources
available.

52
18. Why are you not satisfied with current loan services or
resources?

Particulars frequency percentage

High interest charged by 30 60%
money lenders
Bank do not provide loan 22 44%
No I am satisfied 15 30%

 GRAPH:

 OBSERVATION :
From the above data it shows that, In kalyan area, we taken 100
Respondent in which 50% are small scale vendors and in that 60%
small scale vendors are not satisfied because of high interest
charged by Moneylenders.

53
19. Do you want access to a platform that will provide you with
quick, non- cibil assistance?

Particulars frequency percentage

Yes 41 82%
No 9 18%
Total 50 100%

 GRAPH:

 OBSERVATION :
From the above data it shows that, 82% small scale vendors want
to access this platform and enrol their self in the platform.

54
 HYPOTHESIS

For small scale vendors

 Null Hypothesis (H0) : There is no association between gender and satisfaction

from the existing sources

 Alternate Hypothesis (H1) : There is association between gender and satisfaction

from the existing sources

CHI SQUARE ‘P’ VALUE LEVEL OF SIGNIFICANCE

0.804 0.05

In above table the chi square p value is more than level of significance hence
the null hypothesis is accepted and alternative hypothesis has been rejected.
Hence , there is no association between gender and satisfaction from the
existing sources.

55
 HYPOTHESIS

For small scale Investors

 Null Hypothesis (H0): There is no association between income and Amount of

their investment.

 Alternate Hypothesis (H1): There is association between Income and Amount of

their investment.

CHI SQUARE ‘P’ VALUE LEVEL OF SIGNIFICANCE

0.00000000615 0.05

In above table the chi square p value is less than level of significance hence
the Alternative hypothesis is accepted and Null hypothesis has been rejected.
Hence, there is association between income and amount of their investment.

56
 CHAPTER NO. 5
FINDINGS,SUGGESTIONS AND
CONCLUSION

57
FINDINGS

58
 Findings:
1. Out of 100 Respondent 50% are small scale vendors and 50% are small. Scale
investors.

 Findings from small scale vendors

1. Vendors make up 36% of the 50% of respondents that are between the ages of 26
and 35.
2. 56% of respondents, or more than half, are women, compared to 44% of men.
3. 74% of small-scale traders borrow money from moneylenders.
4. Small-scale merchants borrow money from the unorganised sector in 74% of
cases.
5. 48% of small business owners desire an 8- to 15-day loan.
6. Major small scale vendors wants loan between rupees 4100 to 7000.
7. While most small-scale vendors obtain loans from money lenders and pay high
interest rates, 70% of them are dissatisfied with the loan services offered
currently.
8. 82% of vendor’s are interested in joining this platform.

 Findings from Small scale investors

1. Investors make up 44% of the 50% of respondents that are between the ages of 36
and 45.
2. 68% of respondents, or more than half, are men, compared to 32% of women.
3. Out of the 80% investors are salaried and 20% have business.
4. Due to irregular savings, 42% of investors don’t invest anyplace, while 74% retain
their money in savings accounts.
5. 92% of investors are interested in joining this platform.

59
SUGGESTIONS

60
 Suggestion :

It is suggested that you focus on developing and promoting the loan and
investment platform for small vendors and middle-class investors. The platform
should provide affordable and accessible loans with flexible repayment options to
meet the needs of small-scale vendors like yourself. It is also important to create
awareness among small-scale vendors about the benefits of using the platform,
and to address their dissatisfaction with current loan services provided by money
lenders.

For small-scale investors like you, the platform should provide investment
opportunities that suit your financial goals and preferences. The platform should
also educate investors about the importance of investing and offer guidance on
how to make informed investment decisions.

Overall, the platform should aim to bridge the gap between small-scale vendors
and investors like you and provide a reliable and secure channel for financial
transactions. The platform should also be user-friendly and provide excellent
customer service to attract and retain users like you.

61
CONCLUSION

62
 Conclusion :

The loan and investment platform for small vendors and middle-class individuals
has the potential to address the financial needs of these underserved groups. The
findings of the research highlight the high demand for affordable and accessible
loans among small-scale vendors, as well as the interest among small-scale
investors to invest their savings in reliable and secure channels.

By providing a platform that offers flexible and affordable loans to small-scale

vendors and investment opportunities to small-scale investors, the platform can
potentially create a positive impact on the lives of many individuals and contribute
to the economic growth of the country.

However, it is important to address the challenges and barriers faced by these

groups in accessing formal financial services and to provide them with education
and awareness about the benefits of using the platform. This requires a
collaborative effort from policymakers, financial institutions, and entrepreneurs to
ensure the platform is inclusive and accessible to all.

63
ANNEXURE – 1
BIBLIOGRAPHY

64
 RESEARCH JOURNALS:
1. Journal of Financial Services Research

2. International Journal of Banking, Accounting and Finance

3. Journal of Banking and Finance

4. Journal of Business Finance and Accounting

5. Journal of Financial Economics

6. Journal of Financial Intermediation

7. Journal of Financial Markets

8. Review of Financial Studies

9. Journal of Financial Management and Analysis

10. Journal of Investment Management

65
 Bibliography :

Google Scholar: https://scholar.google.com/

JSTOR: https://www.jstor.org/

ScienceDirect: https://www.sciencedirect.com/

ResearchGate: https://www.researchgate.net/

ProQuest: https://www.proquest.com/

66
 ANNEXURE – 2
QUESTIONNAIRE

67
 QUESTNNIRE

“A Study of a Loan and Investment Platform for Small Vendors and Middle-
Class Investors”

For Both small scale vendors and Small Investors

 Are you vendor or running a business that fall's under small - scale
loan? (तततततततततततततततततततततततततततततततततततततततततततततततततत
ततततततततततततततततततत?)

1. Yes
2. No

For small scale vendors

1.Age (तत)

 18-25
 26 – 35
 36 – 45
 46 and Above

2.Gender (तततत)

A. Male (ततततत)
B. Female (तततततत)

3. From which source do you take short term loan?

(तततततततततततततततततततततततततततततततततततततततततततत?)

A. Organized (Banks, Financialinstitutions)(तततत, तततततततततततत)

B. Unorganized (Moneylenders ,Landlords) (तततततत, तततततततत.)

 .From where you take short term loans?

(तततततततततततततततततततततततततततततत?)
1. .Loan from Bank (तततततततततततत)

68
 2. Loan from financial institutions (तततततततततततततततततततततत)

3. Loan from Moneylenders (ततततततततततततततत)

 How long accomplish you need a Loan for the short

term?(तततततततततततततततततततततततततततततततततततततत?)
1. For 1-7 Days ( 1- 7 तततततततततत)
2. For 8-15 days( 8-15 तततततततततत)
3. For 16-21 days( 16-21 तततततततततत)
4. For 22-30 days( 22-30 तततततततततत)

 What amount do you require as a loan for the short term?

(तततततततततततततततततततततततततततततततततततततततततततततत?)
1. 1000 – 2000
2. 2100 – 4000
3. 4100 – 7000
4. 7100 and Above

 Are you satisfied with the current loan services?

(ततततततततततततततततततततततततततततततततततततततततत?)

1.Yes (ततत)
2. No (तततत)

 Why are you not satisfied with current loan services?

(ततततततततततततततततततततततततततततततततततततततततत?
1. High interest charged by
Moneylenders(तततततततततततततततततततततततततततततततत)
2. Banks do not provide loan because of cibil score
(ततततततततततततततततततततततततततततततत)
3. No I’M SATISFIED (तततततततततततततततत)

 Do you want access to a platform that will provide you with quick, non-cibil
assistance? If you enrol yourself, are you interested?
(तततततततततततततततततततततततततततततततततततततततततततततततत, ततत-
ततततततततततततततततततततत?
तततततततततततततततततततततततततततततततततततततततततततततत?)
1. Yes ( ततत)
2. No (तततत)
For small Investors

69
 Age
1. 18-25
2. 26-35
3. 36-45
4. 46 and above

 Gender
1. Male
2. Female

 What is your occupation?

1. Salaried
2. Business

 What is your monthly income?

1. Below 10000
2. 10000-25000
3. 26000-40000
4. Above 40000

 Why you don’t invest your saved money?

1. Not regularity of saving

2. Don’t know investing platform
3. No, invest

 Where do you invest your small saving?

1. Invest in shares
2. Invest in mutual funds and SIP
3. Kept in saving account
4. Don’t invest anywhere

 Do you want access to a platform that offers investing opportunities without set
payment? Will you put money into that?

1. Yes
2. No

 How much amount would like to invest?

1. Below 2000
2. 2100-4000
3. 4100-7000

70
 4. 7100 and above

 For how much time you are ready to invest your saving?

1. For 1-7 days

2. For 8-15 days
3. For 16-21 days
4. 21-30 days

71