Small businesses can start strong but start to stagnate after a point, as these entrepreneurs often do not have the capital necessary to keep growing their businesses. Timely financing is the key to breaking through and taking their businesses to the next level, however, many MSME entrepreneurs are deprived of capital when they most need it.
This is especially true for first-time entrepreneurs who are new to credit. Since they don’t have a healthy credit score, traditional lenders like banks shy away from approving their loan applications. This is further compounded by the fact that most of them don’t have assets to offer as collateral against a loan.
In such a scenario, the best alternative for an entrepreneur is to find a lender that aligns with their vision and believes in the potential of their business. With access to formal credit, they can transform their business into something truly successful and rewarding.
Introduction: U Tech Engineering
Balasubramani started his machining shop called U Tech Engineering in Dindigul, Tamil Nadu, 9 years ago. He ran his operations, taking on job work and repair, as well as manufacturing spare parts that are hard to find in the market.
With a niche market, he had a fair amount of demand for his products, and could see the potential of his business. He started working with 2 machines and dedicated himself to making his business a success.
Grow your MSME with collateral-free business loans
For 5 years, he worked extremely hard, doing everything in his power to keep his business afloat. He tried to boost the growth momentum of his company by applying every tool at his disposal.
However, despite his best efforts, his business did not witness much growth and his turnover remained low. He eventually realized that he needed additional funding to improve his business, but he didn’t have the wherewithal to fund it himself. So he started looking for financing options.
Like so many small business owners in India, he ran into the problem of not being able to find financing easily. Lenders either demanded collateral or required extensive paperwork and a lengthy process in order to even start processing his loan. He was facing the possibility of his business growth coming to a complete halt if he didn’t find an alternative.
Solution Offered by Kinara Capital
When Balasubramani found out about Kinara's collateral-free loans, he realized he had found the perfect solution. He decided to apply for one immediately. A Kinara executive visited his business and assured him that he would easily secure a loan.
He was pleasantly surprised when his loan was sanctioned in a week. Unlike traditional lenders, Kinara uses data-led AI/ML-based decision models, which speed up the process and ensure that there is no margin of human error or bias. Loans can therefore be disbursed in a matter of 24 hours!
Impact of Solution Offered by Kinara Capital
Balasubramani invested the loan amount of Rs. 2 lakhs in his business, adding more machinery to step up production, and finally witnessed the growth he was waiting for all those years.
He shares, "The timely loan helped in improving my business immensely. I was able to add machinery and boost my operational capacity, and as a result, my turnover increased by 25-35%. I would like to thank Kinara for their support, which has helped me take my business to the next level."
Like Balasubramani, thousands of small business entrepreneurs in India find themselves at a dead end when their business stagnates. This is largely due to the lack of capital infusion. For them, Kinara Capital’s collateral-free loans become a lifeline that helps them take their business to the next level.
Kinara Capital, an RBI-registered, Systemically Important NBFC in India with an aim to empower the MSME sectors has disbursed 75000+ business loans worth INR 3500+ crores to date. With its branches across 3000+ 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. You can now get a business loan by giving a missed call on 080-68264454 and go from decision to disbursement within 24 hours.
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