Customer Success Story: Sai Balaji Electronics

May 23, 2024
Updated on

Business development is crucial for any company to survive in a competitive market and create a niche of its own. This required capital, which can be invested in building efficiency and offering products and services that customers gravitate towards. However, it’s easier said than done for many small business entrepreneurs, who have limited funds to invest in it. 

The alternative that exists is approaching a lender for financing, so that the business owner can fund the machinery, raw materials, workers, etc. that are needed to execute these improvements. However, there is a major hurdle that MSMEs face in this department, as traditional lenders like banks are largely unwilling to lend to them without collateral. Small business owners typically don’t have substantial assets to their name, which can be leveraged as security against loans. This, combined with factors like being new to credit and being unable to manage the extensive paperwork required to apply for a business loan, means that a vast section of the MSME entrepreneurs in India remain underserved when it comes to formal credit. 

These small business entrepreneurs see their plans come to fruition when they discover that some NBFCs provide last-mile lending options tailored to their needs. For many Kinara customers, their wish to improve their business is granted when they receive a quick and easy collateral-free loan to invest in their operations and improvements.

Introduction: Sai Balaji Electronics

Amar Singh started his electronic shop Sai Balaji Electronics in Hyderabad, back in 2008. Prior to that, he worked as a sales executive for a bank for several years before he decided to take the entrepreneurial plunge. 

Initially, his business did not do as well as he had hoped. However, he did not let this disheartened him or slow him down because he had a long-term plan in mind. He intended to gradually improve and develop his business over time.

Problem Statement

The electronics market in India is a burgeoning one, supported by accelerated demand from the rapid urbanization, as well the increasing spending power of the population. 

Amar was well positioned to make the most of the sector growth with his shop. However, while he had started off with ambitious plans, unfortunately, he just didn’t have the funds needed for that growth push.

Solution Offered by Kinara Capital

Around this time Amar was looking for a way to fund his expansion plans, he was approached by a Kinara Capital representative, who proposed opting for a collateral-free business loan. Although it sounded good to him, Amar did not have all the paperwork in place at the time. He realized, however, that the requirements were minimal and the documentation needed was also quite flexible and easy to fulfill. So he contacted Kinara after a couple of years with all of his paperwork in place. After a quick inspection and minimal documentation, he was granted a loan of Rs. 3 lakhs.

Grow your MSME with collateral-free business loans

Impact of Solution Offered by Kinara Capital

Amar used the amount to buy raw materials, and his dreams of business development finally started taking shape. With the two loans of Rs. 4 lakhs each that followed, he established his business as a prominent name and went on to open a hardware store as well.    

He shares, “After we received the first, our turnover increased to Rs. 10-15 lakhs. Then, when we invested the subsequent loans into the business, our turnover shot up to over Rs. 20 lakhs! Kinara is like a great friend to me. They will always be by my side as my business continues to grow. Kinara is the best!”

Amar 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.

Check your Eligibility in 1-minute!

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