1. M1xchange provides collateral based loans to MSMEs.
2. M1xchange facilitates discounting of invoices and Bills of Exchange for MSMEs.
3. M1xchange functions as a credit rating agency for MSMEs.
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📖Detailed Explanation
Explanation:
M1xchange is a fintech platform that facilitates financing of MSME receivables by connecting buyers, sellers, and financiers.
Statement 1 is incorrect: M1xchange does not provide collateral-based loans. Instead, it enables financing against trade receivables (invoices) without requiring traditional collateral.
Statement 2 is correct. Its core function is to facilitate discounting of invoices and Bills of Exchange through the TReDS mechanism, allowing MSMEs to receive early payment from financiers.
Statement 3 is incorrect. M1xchange is not a credit rating agency. Credit assessment is done by participating financiers and existing financial institutions, not by the platform itself.
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