Cash Suvidha, the trade name of Usha Financial Services Pvt. Ltd. that extends business loans to SMEs & MSMEs and personal loans to individuals today announced that it has raised $ 4 million in debt in the second quarter of FY2019-20.
The funds were raised through different Financial Institutions. During the last quarter, i.e., April- June, 2019 Cash Suvidha raised a total debt of $2.3 million from different financial institutions.
The debt will be used to increase the loan books of the company. Founded in 2016, Cash Suvidha provides a variety of loans and funds will be primarily used to facilitate further lending to SMEs & MSMEs, particularly in Bihar, Punjab, Haryana, Uttar-Pradesh, Rajasthan and Delhi/NCR and pan India to cater to the loan needs of Individuals.
Earlier last month, the company announced that it is planning to raise $5-10 million equity funds in the next six months. In March 2018, Cash Suvidha raised $1 Mn in order to provide effective financial solutions to the entrepreneurs and individuals.
Commenting on the development, Mr. Rajesh Gupta, Co-founder, Cash Suvidha, says, “Being acknowledged as one of the fastest-growing NBFCs in India, we are glad to constantly raise debt for onward lending. This capital inflow would help us in extending our best alternative lending services across geographies. We are constantly focusing on filing the gap of financial inclusion in various sectors by providing fast loans, hence, driving the market towards economic growth.”
SME & MSME loans are one of the most sought-after categories of loans at Cash Suvidha. The key challenge witnessed by them is to obtain credit from the bank owing to a number of reasons. This has been predominantly addressed by Cash Suvidha with the successful disbursement of 70-75%of the total loans to SMEs & MSMEs. Cash Suvidha provides loans with a ticket size of INR 50,000- 5, 00,000 for SMEs and 15,000- 50,000 for MSMEs.
The company is known for its quick digital processing, easy lending services and disbursing loans within three working days. Cash Suvidha is able to determine the best leads for credit and match them with the perfect kind of product.