Customer Success Story- Saraswathy Steels

May 23, 2024
Updated on

Steel industry already has a well-established base in the country. Steel utensils are a major tributary of the steel manufacturing industry, the market size of stainless steel utensil industry was over USD 119 billion in the year 2020 and is estimated to grow around USD 182 billion by 2027. The Indian domestic market constituting about 97%-98% of MSME steel sales is highly dependent on domestic costs and demand and supply patterns. The MSME steel industry in India is primarily involved in producing long steel, pig and sponge iron.

Stainless steel due its non-reactive properties, does not react either with alkalis nor with acids. This makes steel the first choice for all types of cookware, dinnerware and storage utensils. Accepted and used worldwide in restaurants, hotels and household steel utensil industry is projected to grow steadily by the year 2027.

Saraswathy Steels

Saraswathy Steels owner Saraswathy started her utensils business with a small amount of funds in 2014 in Madurai, a city in Tamil Nadu. Saraswathy, initially a housewife, was encouraged by her brother to start a steel business after he was influenced by various steel shops in Chennai. Their steel business sells cooking utensils, serving utensils etc.

Problem Statement

Around 90% of MSME women entrepreneurs rely on informal sources to avail credit for their enterprises and over 60% of them don’t even have bank accounts. Women entrepreneurs face numerous challenges while applying for a business loan as there are biases against women led business, don’t have access to formal credit, require additional documents and often charged higher interest rates on their business loans. For Saraswathy being a housewife, faced more challenges as she ventured out to start her own enterprise in 2014.

Solutions offered by Kinara Capital

Saraswathy wanted to expand her business, this is where Kinara Capital stepped in and helped Saraswathy overcome all such challenges by providing her a small business loan of INR 3 lakhs in the year 2017 which they used to buy stock from Madurai and Chennai. Saraswathy also hired people, their business gained 20% profit and they expanded the business.

Saraswathy Steels availed another MSME loan worth INR 5 lakhs in 2018 to buy a piece of land, they built a warehouse on it and store the extra stock that they purchase for future business deals. To further expand their business further Saraswathy availed a third loan of INR 80,000.

Grow your MSME with collateral-free business loans

Impact of Solutions offered by Kinara

Since Saraswathy Steels availed business loans from Kinara Capital, they are growing enormously and have expanded themselves in Chennai, Tamil Nadu and Kerala. They have earned significant profits and advice all to avail loans from Kinara Capital.

Saraswathy adds “Kinara’s Loan was very useful to us and I urge more women to approach Kinara for loans and develop their business. Thank you, Kinara!”

Kinara Capital, a rapidly growing fintech and an RBI registered Systemically Important NBFC in India, providing collateral free business loans to the MSME sector to empower them. Women, as they are pulled back by society when they try to follow their passion and want to do something of their own, Kinara’s HerVikas programme aims to empower such women entrepreneurs to make them reach the height by providing them with instant discounts when they apply for loans. The HerVikas program offers automated discounts to women entrepreneurs without any additional documentation.

To get a business loan for a small business, check your loan eligibility in 1 minute on the myKinara app, download it from the Google Playstore. The myKinara is available in seven different languages; with minimum documentation and safe uploads on a fully digitised platform, get the loan amount transferred in your bank account in 24 hours.

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