The Microfinance sector is significant to the Indian economy with all its forward and backward linkages and its potential to create jobs.
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.
Fintechs are short for financial technology and refer to any form of digital software or technology that works to automate or streamline financial services.
The estimated 63 million MSMEs in India form a significant pillar of the Indian economy through their contribution to over 30% of the country’s GDP and 40% of India’s exports, leading to income generation.
Why do people, corporations, and organizations choose to borrow money from lenders? This is because we require funds for a variety of reasons. When lending money to individuals, lenders need specific assurances, but in some circumstances, trust is all that matters.
Any loan has three primary components: the loan amount, the interest rate, and the repayment time. Because they are reputable and are bound by specific government rules, NBFCs and banks prove to be the most trustworthy lenders.
Financial success isn't a matter of luck, it's a matter of planning. Part of good planning, when it comes to running a business, is about putting things in motion, so that you can keep working without intervention.
If you are a small business entrepreneur looking for formal credit, you have two options. To take a small business loan online from a Non-banking Financial Company (NBFCs) or from a bank. However, since getting a bank loan can be difficult and cumbersome for small businesses, many NBFCs are there to support them, making it easier for micro-small-and-medium enterprises(MSMEs) to obtain a small business loan online.
You can't expect a small business to grow into the company of your dreams right away, especially when you start from scratch. You have to reach different milestones along the way to successfully develop your small business. But one thing is for sure that reaching new heights in your business requires capital, and this need can be easily fulfilled by taking a loan from a Non-banking Financial Company (NBFC).
Loans from NBFCs cater to the various needs of different types of business owners ranging from a small tea shop owner or a person who owns a handloom business in a remote village to an entrepreneur running a factory or a catering business. This also helps generate employment for locals. Moreover, small business owners have a scarcity of property to be pledged as security. This is why most brilliant business ideas cannot see the light of the day as their creators fail to seek a loan from banks.
NBFCS like Kinara Capital understand the dilemma of MSMEs and envision a financially inclusive world where every entrepreneur has equal access to capital. Kinara is an RBI-registered company that issues collateral-free business loans in just 1 day. The company has funded thousands of MSMEs across India and offers various types of NBFC Loans
There are numerous ways NBFC loans can help MSMEs scale up their business
Let see how:
For advancing loan applications, other organised financial institutions look at balance sheets and collateral coverage; but small businesses sometimes don't keep balance sheets and therefore fail to qualify. Kinara Capital’s products fill this void, allowing SMEs to obtain funding in a simple, scalable, consistent, and reliable manner. Thus, it allows Kinara to meet a wide range of market requirements for SMEs.
As a small business entrepreneur, at a certain point in the lifecycle of your business, you are likely to want to expand your business activities. These activities can be related to opening a new store, shifting to a new location, procuring raw material, or adding more products to the list of your offerings. But most of the time, small business owners do not have the capital on hand to make this possible. This is when working capital loans come in handy for MSMEs. These types of NBFC loans help you optimize your business potential.
Outdated machinery can slow down the production process and hence delay the delivery of your products. Untimely delivery will lead to a bad consumer experience, which will ultimately lead to business loss. Availing of a loan from an NBFC will help support your desire to fulfil your customers' expectations on time.
CTA: Grow your business with collateral-free business loans
Kinara Capital provides two types of NBFC loan products:
WORKING CAPITAL LOANS (All Sectors):
ASSET PURCHASE LOANS (Manufacturing only):
Interest Rate: Starting at 21% per annum, on a reducing rate basis
Loan Tenure: 12-60 months
The documents you might be required to submit in order to avail of the loans include:
Customer Name: Iswarya and Mohan Babu
Company Name: Mukund Automats
“Kinara has been the most important factor on our growth and success. Once we got the first loan, we started expanding our business and never looked back. Now we employ 50 people!”
High collateral requirements and complex application procedures are among the main obstacles that MSMEs face while seeking capital. Due to the lack of details about the borrower's financial history, Kinara Capital relies on non-traditional parameters to assess the borrower's solvency. As a result, Kinara provide loans to businesses that are new to formal credit and have a flexible loan process.
