Budget 2020 expectations: Significance of Fintech and their expectations from Budget

Is it a short-term or a long-term one? Taking a loan from a bank is very complicated and, because of this, the role of Fintech companies becomes important and, what is more, that's why their importance is increasing day by day. Due to this importance, it has became a huge industry. And yes, it also has various demands and wants the government to provide relief and a booster shot in Budget 2020.

When we talk about financial services or to expand services like loans to those who really need it, fintech companies play an important role. Unfortunately, loan industry has limited resources and can't reach to each and every needy client, this has paved the way for Fintech companies to play a key role.

Fintech companies have some expectations from the Budget 2020, Here are some 

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Fintech companies say that the ones who have unsecured debt of Rs 50,000 or whose credit history is not that good, should be able to get Priority sector landing. It can be useful to start of better products. 

Small personal loan amounts go directly to the customer's bank account or else the cost of processing fees and verification increases. For short term loans there should be some relaxation in KYC rules too.

There should be an end of double KYC verification and permission should be given for video and E-KYC, they say. There should be uniform stamp duty on every state for Digital documents and there should be no or less Dividend Distribution Tax on Fintechs and NBFCs companies.

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There should be a separate Credit Guarantee scheme for Fintech so that they can easily give loan. A new mechanism to deal with NPA related issues should be there too, they say.