For MSME entrepreneurs, time is of the essence when it comes to getting financing for their businesses. Small businesses usually run on a tight budget and rely on a steady inflow of orders and sales to keep their cash flows balanced. In order to seize new opportunities or act on expansion plans, they need an additional capital infusion, which is often beyond them. Many of them turn to financing in the form of bank loans at this juncture. Unfortunately, banks usually have extensive and time-consuming processes and collateral requirements, which hinder them.
For many Kinara customers, finding out about Kinara’s collateral-free loans turns out to be a game-changer. They avail of the easy and digitally processed loans, which are disbursed within 24 hours of approval, and immediately receive the amount in their bank accounts. Then they can invest the money in time-bound projects like handling seasonal demand, taking up a large order, or expanding their production capacity to meet growing demand. This becomes the turning point for the business, as it gets over the speed bump of capital access, and takes off on the road to exponential growth.
Venkateshwar Reddy started his career working in a manufacturing company, but after a couple of years, he wanted to pursue his dream of becoming an entrepreneur. He might not have had backing or financing, but was certainly ambitious enough to strike out on his own with what little capital he had saved up.
He started off his company, Sealpack Polymers, in Hyderabad, Telangana, with just Rs. 3,000 as capital investment. Although it sounds minimal, he was able to utilize the amount to buy one machine and started operating out of his home to save on costs.
Over time, Venkateshwar’s business grew moderately, and he was able to add more machines and up his productivity. However, his turnover showed no signs of growing significantly. At this juncture, he realized the need to invest a lump sum in his business and decided to approach banks for a business loan. To his utter disappointment, not only did the bank processes seem complicated and time-consuming, but they also required collateral against the loan.
Around the time that Venkateshwar was losing faith in formal financing as a solution to his funding needs, he was approached by a Kinara representative. The loan officer explained to him that he would be able to avail of a collateral-free loan to improve his business with minimal documentation and a very quick process. Venkateshwar was quick to apply, and it changed the future of his business.
Venkateshwar wasted no time in investing the loan amount he received into his business. As the demand for polymer packaging grew exponentially in India, he was able to make the most of the industry’s momentum to catapult his business to success.
He shares, “I received my first loan of Rs. 5 lakhs and invested it in my business. Since I had a good repayment record, Kinara even gave me a top-up loan. This was followed by 2 more loans, which completely transformed my business. From a stagnant turnover of around Rs. 4 lakhs, it has shot up to a minimum of Rs. 12 lakhs now! We are still growing, and in the future, I want to upgrade all my manual machinery to automated ones, and I know Kinara will support me through that process as well.”
Venkateshwar is one of 75000+ 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 100,000+ business loans worth INR 6500+ crores to date. With its branches across 4500+ 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.
