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

June 4, 2024
Updated on

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Outdated machinery can slow down the production process and hence delay the delivery of your products.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 MSME 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): 

  • New machine purchase 
  • Used machine purchase

Interest Rate: Starting at 24% 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.

    Testimonials of Kinara customers:

Customer Name: Iswarya and Mohan Babu

Company Name: Mukund Automats

“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!”

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