Business

Small business lender U GRO Capital expands to unorganised micro businesses; to lend up to Rs 15 lakh

In January, the Noida-based firm turned unicorn after it bagged funding from MasterCard at a valuation of about $1.6 billion.U GRO has to date raised round Rs 920 crore from a diversified set of personal fairness funds like institutional traders and household workplaces.

Credit and Finance for MSMEs: Fintech startup for small business lending U GRO Capital on Thursday launched a devoted lending channel — Gro Micro — for unorganized micro companies in non-metro markets within the nation. U GRO additionally introduced the enlargement of its distribution community by including 25 branches throughout Karnataka, Tamil Nadu, Gujarat, Telangana, and Rajasthan. Small ticket loans to be supplied to micro-enterprises might be secured in opposition to their property. Unsecured loans are possible to help companies in sustenance and stability within the post-pandemic period together with assembly their working capital wants to repair damaged money flows and enlargement objectives.

“Our internal study prompted us of an existence of an opportunity to connect with a large base of micro-enterprises, in select markets, who find themselves in tremendous need of financing, be it term loans or to overcome their working capital crunch.  One primary reason for the lack of credit access is their informal nature of operations,” Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital advised Financial Express Online.

Also learn: Breaking down India’s quest to build its own Twitter: Can Koo chirp louder than the blue bird

U GRO Micro would cater to SME debtors corresponding to Kirana shops, pharmacies, mess or eating places, hair salons, and so on. Rs 1 lakh – 15 lakh secured loans and Rs 50,000- 5 lakh unsecured loans could be supplied for 1-9 years and 12-36 months’ period respectively. The time for disbursal for secured loans could be 7-8 days and 3-4 days for unsecured loans

“Research suggests there exists an opportunity to connect with over 5 million registered MSMEs in target states, a large majority of them would be away from the urban centers…We have created business assessment frameworks for most dominant business profiles across chosen micro-markets, and rely on our strengths of data and technology to facilitate credit deeper into the ecosystem,” Nath added. U GRO has to date raised round Rs 920 crore from a diversified set of personal fairness funds like institutional traders and household workplaces.

Get stay Stock Prices from BSE, NSE, US Market and newest NAV, portfolio of Mutual Funds, Check out newest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and observe us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and keep up to date with the newest Biz information and updates.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button