Micro-small-and-medium enterprises (MSMEs) form the backbone of India’s economy by contributing to the country’s GDP and providing vast employment and income generation opportunities for the population. Yet these businesses face several hurdles, perhaps the most significant of which is the lack of access to formal credit. The vast credit gap in the MSME sector in the country results in small business entrepreneurs failing to achieve their full potential and therefore failing to contribute to the economy at large to the full extent.
Even businesses that have been running successfully for several years need a push to transcend to the next level. Traditional lenders like banks shy away from financing such businesses, given that they are considered high-risk owing to their lack of credit history and collateral access.
For over a decade, Kinara Capital has been driving growth and financial inclusion for small business entrepreneurs by providing them with collateral-free loans through an end-to-end digital process that requires minimal documentation. Thousands of MSMEs have benefited from this access to formal credit, which would have otherwise been completely beyond their reach. The trajectory of Anthonydas and his business is one of many success stories that demonstrate the success of Kinara’s lending model.
Anthonydas runs Vadima Annai Coco Pith in Tamil Nadu. He started his coco pith manufacturing and export business in Dindigul, and has been running his business for a decade, exporting coir products to clients overseas,
His business has been faring at an average rate for over 10 years before he felt the need to start improving it. His business model was one that based production on client demand, so he was able to balance his order pipeline and production volume, but his business had the potential to become a much more profitable enterprise. He just did not have the means to give it the boost it needed.
Anthonydas ran his business for a decade before he realised the need for financing to grow his operations. Like many small business entrepreneurs in India, he did not have the wherewithal to invest in his business to expand it to the next level of growth.
He had the same experience many other MSME entrepreneurs do when they approach traditional lenders like banks for financing support: he was repeatedly turned away because he didn’t have a substantial credit history or sufficient assets to offer as collateral against a loan.
In 2017, Anthonydas found out about Kinara Capital’s collateral-free business loans and decided to apply for one. Very quickly and with minimal documentation, he was issued a loan of Rs. 5 lakhs, which he used to buy raw materials.
His already profitable export business became a thriving enterprise thanks to easy and accessible financing support from Kinara Capital.
Slowly but surely, his business started growing. He took another loan of Rs. 5 lakhs later on, investing it in his operations, followed by 3 more loans, which completely transformed his business.
Anthonydas shares, “My yearly turnover had been around Rs. 10-15 lakhs back in 2004-05, but with the help of Kinara’s loans, I was able to boost it manifold to around Rs. 90 lakhs. We utilised Kinara’s loans well, and it was extremely rewarding. I’m very thankful to Kinara Capital for their support and what they helped us accomplish.”
Anthonydas is one of 75000+ MSME entrepreneurs in India who have benefited from Kinara Capital’s collateral-free MSME business loans. Kinara Capital, an RBI-registered, Systemically Important NBFC in India to empower the MSME sectors, has disbursed 100,000+ business loans worth INR 6500+ crores to date. With its branches across 4500+ pin codes, Kinara provides doorstep services in vernacular.
To get a business loan for your small business, check your loan eligibility in 1 minute in the myKinara App by downloading it from the Google Play Store, with 7 language options available, choose your preferred vernacular. Also, we have a dedicated customer support team available between Monday – Friday (9.30 AM – 6.00 PM) at our toll free number 1800-103-2683 for any questions or assistance. This ensures that entrepreneurs can get the help they need throughout the loan process.
