Customer Success Story: Chhannulal Saroj

April 2, 2023
Updated on

To most of us, access to higher education feels like a necessity in becoming successful and finding gainful employment later in life. However, in India, an affordable education is not accessible to many, and as a result of this, a large section of the population drops out of school at some point. 

Among those associated with the MSME sector, many, including small business entrepreneurs, lack higher education. However, this in no way precludes them from achieving their goals in the future. This is because they are self-taught individuals who master their own trade before taking the entrepreneurial plunge. 

The hard work and natural intelligence of these entrepreneurs trump degrees, and they emerge as shining examples of what dedication can achieve. Here’s the story of one such businessman whose own capabilities, supported by timely capital access, created an amazing success story.

Introduction: Om Engineering Works

Chhannulal Saroj started Om Engineering Works in 2018. He had studied till the 10th standard, but beyond that, his family didn’t have the financial wherewithal to support his education. He moved from his village in UP to Pune, where his brother had been working. He found a job working 8-hour shifts for just Rs. 60 each. 

However, despite his humble beginnings his natural intelligence and learning abilities helped him quickly climb to the position of operator in the same company, eventually being promoted to the role of supervisor, managing a team of 40.  Chhannulal had bigger dreams, so in 2018, he started his own business with 1 machine and 1 worker.

Problem Statement

After starting small, Chhannulal toiled day and night for 6 months, at the end of which, he was able to pull together enough capital to buy another machine. It was still not enough, since he didn’t have the money to buy raw materials. He could not utilize his machinery and take on orders without a steady supply of raw materials. 

He approached several banks for financing and made extensive inquiries, but was turned away each time because his business was so new. Traditional lenders like banks often avoid giving loans to small businesses that are new to the market because they have doubts about the entrepreneur’s ability to repay the loan.

Solution Offered by Kinara Capital

Eventually, Chhannulal came to know about Kinara Capital and approached the company for a loan. A Kinara representative visited his business and assured him that he would be eligible for a collateral-free loan.

His loan of Rs. 2 lakhs was approved in just 5 days, and he was able to invest the amount in his business right away.

Grow your MSME with collateral-free business loans

Impact of Solution Offered by Kinara Capital

He utilized the loan amount to purchase raw materials, which was critical for running his business. The investment allowed him to take on orders and keep his operations running smoothly. Now his business is on the growth path.

He shares, “No one was willing to give me a loan despite all my efforts. Finally, I found Kinara, and they saw the potential my business had and all the hard work I put in, and agreed to give me a loan. Since I invested that money in my business, it has been thriving. I’m very happy and deeply thankful to Kinara Capital.”

When a new entrepreneur like Chhannulal enters the small business space, it is essential for them to receive financing support to keep their company’s momentum up. Failing to get that initial boost, which is often the case because they can’t access formal financing, can mean business closure. In Chhannulal’s case, the course of his life and business were forever altered when he received a loan from Kinara Capital.

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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