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February 13, 2021

3 ways in which NBFCs are helping MSMEs scale up their business

    • February 13, 2021
    • By Team Kinara
    • 3 mins read

    Business Loans

    You can't expect a small business to grow into the company of your dreams right away, especially when you start from scratch. You have to reach different milestones along the way to successfully develop your small business. But one thing is for sure that reaching new heights in your business requires capital, and this need can be easily fulfilled by taking a loan from a Non-banking Financial Company (NBFC).

    Loans from NBFCs cater to the various needs of different types of business owners ranging from a small tea shop owner or a person who owns a handloom business in a remote village to an entrepreneur running a factory or a catering business. This also helps generate employment for locals. Moreover, small business owners have a scarcity of property to be pledged as security. This is why most brilliant business ideas cannot see the light of the day as their creators fail to seek a loan from banks.

    NBFCS like Kinara Capital understand the dilemma of MSMEs and envision a financially inclusive world where every entrepreneur has equal access to capital. Kinara is an RBI-registered company that issues collateral-free business loans in just 1 day. The company has funded thousands of MSMEs across India and offers various types of NBFC Loans

    There are numerous ways NBFC loans can help MSMEs scale up their business

    Let see how:

    • Bridging the financial gap

    For advancing loan applications, other organised financial institutions look at balance sheets and collateral coverage; but small businesses sometimes don't keep balance sheets and therefore fail to qualify. Kinara Capital’s products fill this void, allowing SMEs to obtain funding in a simple, scalable, consistent, and reliable manner. Thus, it allows Kinara to meet a wide range of market requirements for SMEs.

    • Expanding your business

    As a small business entrepreneur, at a certain point in the lifecycle of your business, you are likely to want to expand your business activities. These activities can be related to opening a new store, shifting to a new location, procuring raw material, or adding more products to the list of your offerings. But most of the time, small business owners do not have the capital on hand to make this possible. This is when working capital loans come in handy for MSMEs. These types of NBFC loans help you optimize your business potential.

    • Buying new/used machinery to improve production

    Outdated machinery can slow down the production process and hence delay the delivery of your products. Untimely delivery will lead to a bad consumer experience, which will ultimately lead to business loss. Availing of a loan from an NBFC will help support your desire to fulfil your customers' expectations on time.

    Grow your business with collateral-free business loans

    Kinara Capital provides two types of NBFC loan products:


    • Raw materials/stock purchase
    • Business premises renovation
    • Supplier payments/general business expenses
    • Product/market expansion
    • Machine repair

    ASSET PURCHASE LOANS (Manufacturing only):

    Interest Rate: Starting at 21% per annum, on a reducing rate basis
    Loan Tenure: 12-60 months

    The documents you might be required to submit in order to avail of the loans include:

    • Personal KYC: Aadhaar, PAN, Voter ID, Driving License, or Passport.
    • Address proof: Service bills such as bills for power, water and rental agreements.
    • Finance proof: ITR papers, profit and loss accounts, banking statements or copies of passbooks over the last two years.
    • Company-related documents: Certificates of firm registration, proof of business turnover, Company PAN, Udyam Registration, GST certificate etc.

    “Kinara has been the most important factor on our growth and success. Once we got the first loan, we started expanding our business and never looked back. Now we employ 50 people!”

    Iswarya and Mohan Babu

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    Written by
    Team Kinara
    • Tags
    • NBFC Loans
    • Business Loans
    • Kinara Capital
    • Finance

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