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.
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:
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.