MSMEs are an integral part of the economic landscape of Tamil Nadu and Puducherry. Tamil Nadu accounts for 8% of the total MSMEs in India, and they play a vital role in generating employment, industrial development, and enhancing regional development.
In Tamil Nadu, each of the regions within the state has a strong MSME ecosystem. For instance, the Coimbatore and Tirupur districts are known for their textile and garment industries, whereas Chennai has a strong presence in the automotive and IT sectors. The state government has implemented various policies to support MSMEs, including offering financial incentives, subsidies, and access to credit. Initiatives like the Tamil Nadu Industrial Policy (2014) and the MSME Policy (2021) aim to foster entrepreneurship, provide infrastructure support, and enhance skill development.
Similarly, in Puducherry, MSMEs are vital to the economy. The government has taken steps to create a conducive environment for MSME growth. The Puducherry MSME Policy (2019-2024) focuses on promoting entrepreneurship, skill development, technology adoption, and market access for these enterprises. The policy offers incentives such as capital subsidies, interest subsidies, and assistance for quality certifications to encourage MSMEs to flourish. Both Tamil Nadu and Puducherry have set up industrial & technology parks and business incubators to provide infrastructure and support services to MSMEs.
The MSME ecosystem in Tamil Nadu is very vibrant. Tamil Nadu has the third largest number of MSMEs in the country. The state has over 5 million MSMEs. MSMEs in the state produce over 8000 products, and as per the report by the Ministry of Statistics and Programme Implementation, it holds the top position for the number of factories and industrial workers and its gross state domestic product (GSDP) is estimated to be $320.27 billion in 2022-23. Tamil Nadu also has the highest number of women entrepreneurs in the country, accounting for over 10 lakh units.
MSMEs in Puducherry have also grown manifolds, and the Union Territory has over 96,000 MSMEs which is around 0.22% of the total MSMEs in the country. Manufacturing, trading and service are the leading sectors present in the state. Tourism is one of the major industries in the UT.
Kinara Capital expanded its presence to Tamil Nadu in the year 2012. Since its operations began in the region, Kinara has disbursed more than INR 1,960 crores over 33,000 business loans. Through its HerVikas program, a unique initiative aimed at empowering women entrepreneurs, Kinara has disbursed over INR 226 crores across 2,140 HerVikas business loans to women entrepreneurs across Tamil Nadu and Puducherry.
Kinara Capital has positively impacted the lives of various people in the areas through its collateral-free business loans. The support from Kinara has enabled the creation of more than 30,229 jobs in local economies. It has also led to over INR 139 crores in incremental income generation by MSME business entrepreneurs.
Kinara is determined to aid the growth of the MSME sector in Tamil Nadu and Puducherry. To this effect, Kinara recently announced that they are planning to disburse over INR 1,100 crores in the fiscal year 2023-24 to the MSME sector via their variety of loan products.
Kinara provides access to formal credit to small business entrepreneurs with their working capital loans, asset purchase loans, bill discounting and the special programme HerVikas, which is designed to empower women entrepreneurs and enable MSMEs to expand their operations and grow beyond their potential.
Kinara, through 39 branches across Tamil Nadu, including the three newly opened branches in Aranthangi, Thiruvanmiyur, and Veerapandi, is looking to reach a larger audience in the urban and semi-urban areas of the state. The company is all set to add more employees to its 396-strong workforce in FY 24 and expand its customer base in Tamil Nadu and Puducherry.
Kinara Capital streamlines loan disbursals by utilising advanced technology and data-driven processes. Their exclusive platform, myKinara app, ensures a seamless and efficient loan application and approval process. The app allows the user to choose Tamil from the 7 vernacular options available for easy navigation. Consequently, Kinara Capital minimises the time and effort needed for MSMEs to access funds, enabling them to concentrate on their core business operations.
Reiterating the company’s commitment to supporting MSMEs in Tamil Nadu and Puducherry, Thiru R, the Chief Operating Officer (COO) of Kinara Capital, said, “Kinara Capital is proud to support the hardworking MSME business owners in Tamil Nadu and Puducherry who contribute immensely to the economic growth of our nation. In FY23, Kinara Capital disbursed more than INR 656 crores in this region, 130% higher than in FY22. With a renewed commitment of INR 1,100 crores to MSMEs this financial year, we are realising the aspirations of thousands of MSME entrepreneurs across the state, all the way from Chennai to Kanyakumari!”
Kinara Capital has been at the forefront of driving the financial inclusion of MSME entrepreneurs by providing them with collateral-free business loans. Collateral-free business loans such as Working Capital both short-term and long-term, Asset Purchase and HerVikas loans from Kinara Capital allow MSMEs to access capital quickly and easily, helping them to invest in their business and grow. The loan availability can range from INR 1 lakh to 30 lakhs.
The working capital loans can be utilized for buying raw materials, paying salaries to the employees, renovating the business premises and other business related operations. Kinara’s asset purchase loans can be used to buy machinery including second-hand machinery purchases. The special women entrepreneurs empowerment programme, HerVikas can be availed by women MSME owners, the specialized programme is designed to provide automated interest rate discounts on business loans availed by women proprietors.
Kinara Capital is a fast-growing fintech with a mission to drive financial inclusion of MSME entrepreneurs and transform lives, livelihoods and local economies in the process. Kinara Capital has disbursed over 90,000 business loans worth INR 5,000 crores to the MSME sector to date. Kinara Capital has made it easy for MSME entrepreneurs to apply for business loans online.
By accessing the online application through the Kinara website or the myKinara app, entrepreneurs can check their eligibility for a business loan in just 1 minute. Once eligibility is confirmed, they can proceed with the application by submitting the minimum required documentation. The approved loan amount is then digitally transferred to their account within 24 hours, eliminating unnecessary delays. With this fully digitalised process, MSMEs in Tamil Nadu and Puducherry can conveniently apply for business loans online. To receive additional assistance, individuals can contact Kinara's customer support team by giving a missed call at 080-68264454.