MSMEs are an integral part of the economy and contribute around 35% to the global Gross Domestic (GDP). They encompass a diverse range of industries, from manufacturing and services to agriculture and technology. MSMEs are known for their ability to adapt quickly, promote innovation, and contribute to local development. By creating jobs and stimulating economic activity, MSMEs foster sustainable growth and reduce poverty.
Despite their immense potential, MSMEs encounter several challenges that hinder their growth and sustainability. Some common hurdles include limited access to finance, inadequate infrastructure, regulatory complexities, skill gaps, and market competitiveness. These challenges often prevent MSMEs from scaling up, investing in technology, and optimizing their operations, limiting their overall impact.
MSME Day is celebrated all over the world with great enthusiasm. The festivity dates back to 2017 when the first International MSME Day was celebrated on 27th June with the theme, “The Dynamic Contribution of MSMEs to the Global Economy”. It has been a successful endeavour since then. This global event serves as a reminder to recognize and appreciate the vital role that MSMEs play in driving economic growth, innovation, and employment opportunities worldwide. This article dives into how an NBFC is committed to empowering them.
NBFCs play a crucial role in bridging the financial gap faced by MSMEs. Unlike traditional banks, NBFCs are more flexible in their lending approach and tailor their financial products to meet the specific needs of MSMEs. They provide access to capital through loans, working capital finance, equipment financing, and more. Additionally, NBFCs offer specialized advisory services, mentorship programs, and capacity-building initiatives to enhance the overall business acumen of MSMEs.
Kinara Capital is an RBI-registered Systemically Important NBFC in India and is committed to supporting the MSMEs financially by providing them collateral-free business loans. The fintech believes in empowering small business owners and building entrepreneurial spirit.
Kinara Capital provides financial assistance to small business owners in the form of working capital loans, asset purchase loans (machinery loans), and bill discounting loans and offers discounts on the interest rates for women entrepreneurs under their special program, HerVikas. The NBFC has disbursed 90,000+ loans worth over INR 5000 crores.
On this MSME Day, Kinara is celebrating the achievements of MSMEs and reaffirming its commitment to supporting them. Here, Kinara showcases customer success stories from the Indian states they serve.
Rakesh P Singh from Bengaluru Karnataka, founded Sangeetha Foods, a snack food company, in 2009 but suffered significant losses along the way as his venture struggled to gain traction. Even though he worked 18 to 20 hours per day, he still didn’t experience the desired growth. After 2 years of hardships, his company started to show signs of growth about 8 years ago. His business quickly got up and running better than ever when he invested in a new unit.
To advance his company’s growth and increase both his clients and his product offering, he still needed finance. Overall, Rakesh’s business was going well until the Covid-19 pandemic struck. All of his growth plans were suddenly set to be shelved as liquidity dried up and demand decreased just as he was about to broaden his product selection.
A Kinara executive approached Rakesh about this time. When he applied for the loan, he was pleasantly impressed by how easily the loan application process went as it was approved right away, and he had the money in his account within 24-hours! Rakesh used the loan money to invest in his company, which enabled him to survive the financial crisis and recover fast.
He availed another loan from Kinara, this time to increase the scope of his product offerings. His financial independence and the opportunity to raise his family’s standard of living made this a life-altering experience. Since he received the financing from Kinara, his company has grown by 30–40%, and as a result, has been able to hire 5 more employees. His company is now flourishing, and he even sells his goods online.
Geetha and Thiyagarajan, a couple from Chennai, Tamil Nadu, founded Garuda Steel 15 years ago. They started with only one machine and one employee, but they soon ran into financial difficulties. Around this time, they were approached by a Kinara Capital representative who offered to help them obtain collateral-free business loans. Geetha had been approved for a loan of INR 2 lakhs, and she was soon given an upfront discount under the HerVikas program.
They soon repaid the loan and then sought another round of financing from Kinara, which they used to purchase raw materials and hire more employees. This resulted in a significant boost for the company, making Geetha another successful HerVikas business owner.
With financial assistance from Kinara, they were able to acquire raw materials, which helped them to expand their customer base. They also hired 5 additional workers, which helped to streamline operations. Their turnover is around INR 5 lakhs, and they even made a profit of around INR 1 lakh.
Supporting and empowering women MSMEs owners is not just about helping them succeed in business. It is also about creating a more just and equitable society. When women are empowered, they can break down gender stereotypes and create opportunities for other women.
Patnala had a long-held ambition of running his own business, and his 20 years of experience in a workshop gave him an advantage when he started his automobile business, Eswari Automobiles in Visakhapatnam with two employees. However, he knew that his dream would require more funds than just experience. Achari quickly realized that his business needed more capital to grow. His monthly turnover of INR 30,000 did not allow him to invest in additional manpower or machinery.
Kinara Capital had just expanded to Visakhapatnam at the time, and he was approached by a loan officer who explained the collateral-free loans to him. He applied right away, and the loan amount of INR 3 lakhs was disbursed in his account shortly after, with minimal documentation.
A year after receiving his first loan, Achari once again needed additional funds. Kinara Capital’s continuous financial assistance helped him expand his business by purchasing machinery and hiring additional employees. With Kinara’s support, he was able to grow his business and increase his earnings from thousands to lakhs.
The Sri Sai Bangles and Cloth Store is owned and operated by Durga and her husband Shankar Reddy in Cherlapally, Hyderabad. They started their business in 2016 with limited financial resources. But as soon as they realized they needed more money, they decided to look into lending options and contacted Kinara Capital.
They were able to secure a loan of INR 2 lakhs after providing the necessary documents, and they were able to repay it quite easily. Kinara Capital was impressed by their prompt repayment, so they contacted them again and offered a festival loan of INR 1 lakh, which they utilised to stock their goods and successfully repaid this as well within six months.
Subsequently, they were granted a Covid relief loan of INR 1.2 lakh with a one-year interest-only payment period before beginning EMI payments. This loan assisted them in developing their business even during the financial crisis that followed the pandemic, and they were able to acquire much-needed inventory. Kinara Capital was so confident in Durga’s ability to repay the loan that it offered them a larger loan of INR 5 lakh, which gave them the financial resources they needed to grow their business and achieve their goals.
They had approached several other lenders but were discouraged by the complicated processes and the time it would take to get a loan. However, with Kinara, they received the loan in a matter of days.
Suchita founded her company in 2019, after graduating with a BBA in AgriBusiness and AgriClinic. Krushakmitra located in Satara, Maharashtra is a retailer of agricultural products that helps farmers with their seasonal needs and offers a variety of fertilisers, seeds, and agricultural machinery.
Through the use of demonstration videos and explanations, Suchita has worked to ensure that farmers have the knowledge and necessary abilities to operate machinery equipment safely and successfully since she established her company. Suchita has modified her business approach in order to keep enough goods on hand during busy times and has become aware of the seasonal demand for specialised machineries like threshers and harvesters. In order to maximise farmer affordability, she sells at wholesale rates compared to retail costs. And every time she needs working capital to grow her business and assist more farmers, Kinara Capital offers unsecured loans.
Kinara’s financial help is the driving force behind Suchita’s business’s success. The HerVikas loan helped her as a woman entrepreneur to grow her business, and she wanted to celebrate this success by offering discounts to her customers on Women’s Day. The loan helped her increase her revenue, which motivated her to expand her business and support more local farmers.
Arjun Singh Rajput is an MSME entrepreneur who founded Mateshree Industries, a company that manufactures steel utensils, including plates, dinner sets, trays, and also copper and brass utensils. The company is located in Odhav, Ahmedabad, Gujarat.
Mateshree Industries started out without incident, but later the business had financial issues and was short of cash, which forced Arjun to deal with operational difficulties. He required more financing to run the company smoothly.
Arjun’s attempts to obtain business loans from several banks were unsuccessful because they required property collateral and extensive documentation. He then approached Kinara Capital, which reviewed his overall business and assessed his creditworthiness before providing him with a loan of INR 6 lakhs within 7-8 days.
Arjun used the first loan to purchase new machinery, which helped him to grow his business and create jobs. He introduced several new products with the new machinery, which further increased his profits and allowed him to hire 8-10 new workers.
A year after receiving his first loan, he needed more funding. He received two more loans from Kinara, one for 4 lakhs and one for 10 lakhs. The loans helped him upgrade his business step-by-step, and his business has now grown significantly from its early days.
Kinara Capital is a registered entity of Kinara Capital Private Limited and is a leading last-mile lending fintech company that has made significant contributions to supporting and empowering MSMEs. The company’s primary focus is on providing hassle-free and accessible financial solutions to underserved and unbanked MSMEs in India.
Kinara Capital understands the crucial role that MSMEs play in driving economic growth and job creation and aims to bridge the credit gap by leveraging technology and innovative lending models. Kinara is based in Bangalore and has 133 branches in six states, Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, Maharashtra, Gujarat, and UT Pondicherry.
One of the key factors that set Kinara Capital apart is its last-mile approach. The term “last-mile” refers to reaching the most remote or underserved areas, where traditional financial institutions may not have a presence or find it unviable to extend their services. Kinara Capital has strategically positioned itself to cater to such areas, ensuring that MSMEs across the states in India have access to much-needed credit facilities.
The company has developed a proprietary credit evaluation methodology that goes beyond traditional underwriting methods. Instead of relying solely on collateral or credit scores, Kinara Capital assesses the creditworthiness of MSMEs based on their business performance, cash flows, and potential for growth. This approach allows them to extend credit to a broader range of businesses that would otherwise be overlooked by traditional lenders.
Kinara Capital offers customized loan products tailored to the specific needs of MSMEs. These loans are typically used for working capital requirements, purchase of equipment or inventory, expansion plans, and other business-related purposes. By providing timely credit, Kinara Capital empowers MSMEs to sustain and grow their operations, create employment opportunities, and contribute to the overall economic development of the country.
The company’s commitment to leveraging technology is another factor contributing to its success. Kinara Capital has developed, myKinara app, a robust digital platform that streamlines the loan application and approval process, making it faster and more efficient. This digital approach not only reduces paperwork and manual processing but also enables the company to extend its reach to remote areas.
In addition to its core lending activities, Kinara Capital also provides non-financial support to MSMEs. The company offers business advisory services and a literacy program, Grow with Kinara (GWK) to help entrepreneurs strengthen their business acumen and make informed decisions.
Kinara Capital’s contributions to the MSMEs have been widely recognized and appreciated. The company has received several awards and accolades for its innovative approach and positive social impact.
MSMEs can apply for business loans by checking their loan eligibility in under 1-minute on Kinara’s website or in the myKinara app which is available for download from Google PlayStore. The application provides 7 language options English, Hindi, Kannada, Tamil, Telugu, Marathi and Gujarati to choose from and navigate through. Once they pass the eligibility check and submit the minimum documentation, the full digital platform will verify them. Once the documents are verified, the loan amount will be transferred to the applicant’s bank account within 24-hours. 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.
