Small business entrepreneurs often find themselves at a standstill in terms of business growth, since the funds they can invest into their operations is limited. Growth demands financing, and that’s one thing that many entrepreneurs in India lack access to, especially in the MSME sector.
Lack of formal financing can give rise to a host of issues, and stagnation is only one of them. It can cause shortfalls in raw materials, resulting in operations being disrupted, setting off a chain reaction resulting in the business being endangered. These issues are exacerbated by setbacks like the Covid-19 pandemic.
MSMEs in India suffered disproportionate damage in the wake of the pandemic. As business dried up, their limited liquidity caused MSMEs to suffer a financial crunch. Kinara stood by its customers during those trying times, helping them get back on their feet. For one customer, whose business has only witnessed real growth after becoming associated with Kinara, the Covid relief loan he received after the pandemic was the lifeline that saved his business.
Namdev Narayan Ahire opened up his machine shop in Satara way in 2007. Over the next decade or so, he ran his business, putting time and effort into keeping it operational and profitable.
However, he didn’t really witness much growth and wasn’t sure what he needed to do to make headway. In 2018, he decided that he needed to seek financing to give his business the boost it needed. This was complicated by the fact that he had a lot of outstanding bills with various companies, which put him in a precarious position. All the banks and financing companies he approached immediately turned him away.
Namdev did not have the funding to grow his business, and On the verge of losing hope, Namdev approached Kinara Capital, and to his surprise, not only was he approved for a loan, but he was granted a substantial amount of Rs. 12.7 lakhs.
However, as he continued to grow his business, he was suddenly hit with the unexpected impact of the Covid-19 pandemic. While he had paid off his dues, bills started piling up once more as business slowed down.
When Namdev first approached Kinara, he was granted a loan of more than Rs. 12 lakhs. He used the loan amount to add 2 CNC machines, which would be too expensive and well out of reach for him without the loan.
During the pandemic, he was once again pleasantly surprised by the unrelenting support he received from Kinara, as he was granted a Covid-relief loan to settle his outstanding bills, and keep his business running smoothly.
Aside from adding machinery, Namdev also used the proceeds of the loan to engage more people to operate the equipment, improving the quality of his products as well as the output. Not only did this improve his business, but also created employment for several others, supporting their families and local economy.
He shares, "After 11 long years of running my business, I finally saw unprecedented growth and progress when I received a collateral-free loan from Kinara. I was also able to weather the pandemic and keep adding to my workforce and machinery with Kinara’s support, maintaining steady growth for my business. I now have a manufacturing unit of 7 machines and 9 employees. I’m very thankful for everything they have done for me."
Namdev is one of the thousands of MSME entrepreneurs supported by Kinara in the aftermath of the pandemic. Kinara helped all its customers either pivot or adapt their businesses to recover as quickly as possible as the impact of the financial crisis abated. For many, it was the support they needed to keep their businesses afloat.
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.