Finova Capital, the NBFC licensed by Reserve Bank of India is committed to making finance available for the Indian MSMEs. In a recent announcement, Finova Capital shared its target of disbursing loans worth INR 100 Crore in 2017 to the Indian MSME sector. Within the past one year of its launch, the fastidious company has already disbursed loans worth INR 20 Crores to over 220 small scale merchants, with the ticket size of INR 9 Lakh.
Commenting on the announcement, Mr. Mohit Sahney, MD & CEO, Finova Capital said, “The MSME sector in India is a strong contributor to country’s GDP, along with creating employment opportunities. Despite their efforts, the sector often finds it challenging to access the traditional financial services, due to various factors, including lack of documentation, tedious paperwork and others. At Finova Capital, it is our endeavor to reach out to the financially excluded and unorganized MSME sector, making finance available at reasonable costs with flexible tenures and transparent processes, enabling their growth and expansion.”
The target loan will be disbursed by Finova Capital among small business owners, with primary focus on electricians, plumbers, carpenters, hairdressers, tea stallers, food kiosk owners, etc.
Sharing his opinions on the services provided by Finova Capital, Mahavir Prasad Parate, a Tea vendor from Lal Kothi in Jaipur said, “Today, I earn INR 40,000 per month. But, this wasn’t always the case. As a tea vendor in a small town, not many banks were willing to lend me money for growing my business. Those that did offer came with lots of paper work and formalities, which was impossible for me to deal with. Finally, I approached Finova Capital, where they provided easy loan facilities. I took a loan of INR 6.67 Lakh for a comfortable tenure of 7 years. Their ease of operations and support made it easier for me to scale-up my business.”
Adding to the same thought, Narayan Singh Negi, a Paan-vendor from Jaipur, cites, “Finova Capital has made it easier for me to manage and scale my humble business. While most banks were willing to offer me a loan, I realized that the terms for repaying the same within 2-3 years with high EMIs could become immensely difficult for me in the long run. Finally, I found out about Finova Capital and the long reimbursement tenures they offer. I availed a small business loan worth INR 6.40 Lakh for 7 years with EMIs at half the prices. It is certainly the best decision I ever made.”
Bringing about financial innovation and transforming credit delivery, Finova Capital offers flexible ticket size of the loans between a minimum of 2 Lakhs to maximum 20 Lakh, depending on the requirements. Within just a year of its operations, Finova Capital has emerged as one of the most preferred financial services providers amongst MSMEs in India.