Customer Success Story: Raraju Machinery and Engineering

May 23, 2024
Updated on

The machinery and machine tools industry in India is an important sector of the country’s manufacturing industry, as machine tools are essential for the production of a wide range of goods, including automobiles, aircraft, defense equipment, and consumer and industrial products. The industry is characterized by a high degree of specialization, with firms producing a wide range of machine tools, including lathes, milling machines, grinding machines, drilling machines, and other types of metalworking machinery.

Given the magnitude and scope of the industry, thousands of small business owners begin their entrepreneurial journey in this market. However, many of these entrepreneurs, especially those with new businesses, come up against the massive challenge of securing financing without a credit history. While banks simply turn them away, there are progressive lenders who are now bridging the gap and giving them the chance to thrive.

Introduction: Raraju Machinery and Engineering

Vaara Prabhakaran started his business, called Raraju Machinery and Engineering, as a very small unit manufacturing and selling machinery and parts to various industries. He also took up a variety of job work for customers across these industries. 

While his Vishakhapatnam-based business had started as a small unit, it had the potential to become very successful, given the scope of the machine tools industry in India. Prabhakaran had big plans for his company and wanted to invest in its growth from early on.

Problem Statement

Prabhakaran’s business showed great promise at the outset, but he came up against the same hurdle so many small business entrepreneurs in India face, and which turns out to be the end of their growth trajectory: lack of funds. 

He sought financing from banks to invest in growing his business, but given that his business was a relatively new one, no lender wanted to take the risk of issuing him a loan. This is an issue that the majority of MSME business owners in India face, given that few of them have access to assets that can be leveraged as collateral. With no security in place, and no credit history to establish their creditworthiness, new MSME owners have an extremely difficult time securing financing for their business.

Solution Offered by Kinara Capital

After a series of disheartening rejections from banks, he finally met a Kinara representative, who was quick to assure him that he met all the requisite criteria to access a collateral-free business loan.

He explained that unlike banks, Kinara does not ask for collateral against business loans, nor does it require extensive paperwork to establish the credit history of a customer before lending. Instead, the company uses new-age data-led decisioning models, which allows loan disbursements to be carried out in just 24 hours.

Prabhakaran seized the opportunity, and applied for a business loan from Kinar. He was quickly granted a loan of Rs. 5 lakhs, and his business growth took off.

Grow your MSME with collateral-free business loans

Impact of Solution Offered by Kinara Capital

Prabhakaran invested the loan amount he received from Kinara into expanding his business and establishing it as a trusted name in the sale of machinery and machine parts.

He shares, “I took my first loan of Rs. 5 lakhs from Kinara in 2019, and that had an incredibly positive impact on the growth of my business. To me, the fact that the company makes such an effort to support the growth of small businesses like mine is a wonderful thing. I advise all entrepreneurs to approach Kinara if they need financing. Not only will they fuel your growth, but will also fund your dreams!”

Prabhakaran is one of 45000+ 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 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. 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.

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