Fino Finance targets MSMEs, aims Rs 1000 cr AUM from the sector

Mumbai, 23 November 2017: Fino Finance Pvt. Limited, a RBI registered NBFC-MFI and subsidiary of Fino Paytech, launched loans for MSME customers to explore growth opportunities. The micro-finance firm adds MSME loans to its existing offering of joint liability group (JLG) lending in remote rural areas.

According toBCG-FICCI 2017 report, less than 10% of the 50 million strong MSMEs (Micro,Small and Medium Enterprises) in the country borrow from formal financialinstitutions. In this context, NBFCs and NBFC-MFIs have emerged as effectivealternate to banks for credit related products. 

Fino Financelaunched MSME loans in Delhi NCR early this month and would target smallbusiness owners such as those running kirana, garment, hardware, local dairyand beauty parlour outlets among others.

TermingMSME sector as the next big growth driver, Mr. Sudeep Gupta, Chief OperatingOfficer, Fino Finance Pvt. Limited said, “MSME loan is a continuation of our endeavor to pursuegrowth opportunities. We plan to raise Rs 200 crore to fund this initiative andexpect our MSME portfolio to touch Rs 250 crores in FY 18-19 and Rs 1000 croresin the next 5 years.” 

“We starteda pilot in Madhya Pradesh earlier this fiscal, the results of which have beenencouraging and gave us confidence to launch in Delhi NCR. Going forward wewill offer MSME loans in UP, Bihar and Maharashtra, where we have been doingJLG business for almost a decade. We intend to tap those unbanked segments withhigher loan requirements for business expansion and have valid propertydocuments as collateral,” added Mr Gupta. 

Thecollateral based MSME loans have an average repayment time of 36 months and theticket size ranges from Rs 1 lakh to Rs 15 lakhs. Small business owners use theloan amount as working capital to expand their business, increase income andimprove quality of life.


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