Is a NBFC Business Loan Financially Beneficial for Growth in FY23

April 3, 2023
Updated on

A business loan availed from a NBFC is a NBFC loan. Non-banking financial companies (NBFCs) are new generation lenders who are changing the MSME lending landscape in India. NBFCs help small business owners to get access to formal credit and secure financial help to grow and expand their businesses. 

NBFCs are institutions which do not hold banking licenses but provide bank-like services, mainly involved in providing unsecured, collateral-free business loans. For MSMEs these NBFC are a blessing in disguise, as they find it difficult to get financial help from the banks due to lack of collateral.


Accessing formal credit or MSME business loans is a task for small business owners and MSME entrepreneurs. The banks are occupied by the large enterprises which is already a big challenge for the small businesses, above it the ask for asset deposit, time that goes in getting a loan sanctioned are other factors that add to their difficulty.

Non-banking financial companies offer a simplified process and criteria for MSMEs to borrow funds.  Thefaster loan process, minimal documentation, digital process and the most important collateral free loans are some of the UPSs for MSMEs for choosing NBFCs for their financing needs.

Grow your MSME with collateral-free business loans

NBFC Loan in FY 2023 for the Growth of Micro Small and Medium Enterprises

Digital lending in India is a segment that is growing exponentially with every passing year. The market by 2023 is further expected to reach a value of around USD 350 billion. The growth of NBFCs is directly proportional to the growth of small businesses, with the increase in their value NBFCs will be more efficient in providing funding at more flexible terms and conditions.

Loans availed form a NBFC are beneficial to MSME in the following ways:

  • Collateral Free loans are available for small businesses to expand their business. NBFCs like Kinara Capital provide unsecured loans under their working capital loan, machinery loans and HerVikas programme. These loans are helpful for MSME who do not have any property to mortgage and want to expand their businesses.
  • Eligibility Criteria is one major aspect of availing a loan from a NBFC as their criteria are digital and one can check the loan eligibility in no time.  Such as in the myKinara app from the Google Play store that gives your eligibility results in 1 minute.
  • Minimum Documentation is a major factor that makes MSMEs turn towards NBFCs, is the low number of documentations that needs to be provided, the documents generally are uploaded digitally on fully secured online platforms.
  • Time of Disbursal, after the procedure followed, the time that leads to the disbursal of the loan amount is the most important factor that is considered by any customer who wishes to take a loan. Kinara Capital’s 24-hour disbursement policy makes it possible to transfer the loan amount.
  • Flexibility in terms of tenure is another benefit that MSMEs leverage while availing credit facility from an NBFC.  The tenure of the loan makes the small business owners be flexible with the type and amount of loan they avail.
  • A NBFC loan in the financial year 2023 is a great option as the industries opened up and increased their production capacity will directly contribute to the growth of the MSMEs sector. The credit growth of the non-banking financial company is estimated to rise by 14% in FY 2023 from 8% in FY 2022 after the outbreak of the pandemic. MSMEs can take advantage of the fact that there will be easy disbursement of loans, minimal documentation requirements and no property collateral.

Kinara Capital is an RBI registered Systemically Important NBFC in India, and aims to empower the MSME sector by providing collateral free loans. Kinara’s business loans can be availed for business development, asset purchasing etc. Working capital loans by Kinara can be utilized for buying raw material and paying workers. The HerVikas programme is designed to provide business loans to women business owners, with HerVikas women get instant discounts on their loan applications.

Kinara Capital has disbursed loans 7000+ worth over INR 3000 Crores till date. Check your loan eligibility on the myKinara app in 1 minute and avail MSME loan in 24 hours at your doorstep in vernacular. You can also give a missed call on 080-68264454 and talk to our team for any queries you have.

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