Post-covid recovery for SMEs: Understanding the role of Fintech Companies

September 22, 2023
Updated on

Without a doubt, the Covid-19 pandemic has been one of the most significant phenomena that we have witnessed in our lifetime. The pandemic halted the social and economic life of people throughout the world. In addition to this, Micro-small-and-medium enterprises (MSMEs), which form the backbone of India’s economic structure, have been severely impacted by this pandemic. The cash cycles of small businesses have been completely disrupted. Hence, the SME loan Schemes act has come as a breather for MSMEs.

The MSMEs’ situation is of great concern because they are an integral part of domestic and global value chains. Even before the pandemic, the industry struggled with issues like late payments, over-dependence on a small number of consumers, and a lack of skilled workforce. The pandemic has further disrupted the MSME segment’s operations.

These are some obstacles that MSMEs are currently facing:

  1. Reduced opportunities for growth capital
  2. Cash flow issues
  3. Reduced transactions
  4. Delayed payments
  5. Labour issues due to migration

Fintechs help MSMEs cope with these struggles by offering various SME loan schemes and products. So if your business is struggling with any of these issues, you can avail of a business loan and get back on track.  

Kinara Capital is a socially responsible fintech company working towards propelling the financial inclusion of small business owners in India. The company addresses the credit gap for MSMEs in the Manufacturing, Trading and Services sectors with fast and flexible collateral-free business loans in the range of Rs. 1-30 lakhs.

Here are some of the loan schemes and products available for MSMEs:


  • Raw Materials/Stock Purchase
  • Business Premises Renovation
  • Supplier Payments/General Business Expenses
  • Product/Market Expansion
  • Machine Repair

ASSET PURCHASE LOANS (Manufacturing only): 

  • New Machine Purchase 
  • Second-hand Machine Purchase

Interest Rate: Starting from 24% per annum, on a reducing rate basis
Loan Tenure: 12-60 months

Small Business Entrepreneurs supported by Kinara Capital report an average income increase of 20-25%. Their business growth is also boosted with increased production capacity, and higher sales and turnover, which gives them the ability to hire more employees.

Advantages that Kinara Capital offers MSMEs

  • A flexible loan process that requires minimum documentation. 
  • The loan process looks beyond just the credit scores.
  • The reduced turnaround time to just 1-day for loan disbursement.
  • Standardized process and efficient use of technology to help speed up the procedure of loan disbursal.
  • Providing business loans without collateral. 
  • Friendly doorstep customer service 

Here’s a glimpse of what some of our customers have to say:

Nageswara Rao Samsani

Sri Durga Raja Rajeswari Coir Industries

‘Within a week, my loan was processed by Kinara. The turnaround of the loan processing was pleasant and unexpectedly fast! I was able to add another unit, and the total production increased by one ton daily. Thanks a lot to Kinara Capital for their support.”

Sri Engineering

“We started our business with a single lathe machine. Earlier, we got help from family and friends. However, to really develop our business, we needed loans to buy CNC machinery. Within a year, we moved from 2 to 8 employees and our turnover increased by 60%. Thanks for the support from Kinara Capital.

Small business requirements vary significantly from those of large corporations. Money may be required by a small business to meet a temporary cash crunch, pay wages, fulfil a large order, or even do something innovative. Therefore, taking a fast collateral-free business loan from a fintech would be an ideal choice. The process of availing of SME loan schemes and products is quick and flexible. The document requirements are minimal, and no property collateral is needed.

So, get your business back on track and take it to new heights by applying for a loan from Kinara Capital.

You may also like