MSMEs Loan Against Property: Arka Fincorp’s New Loan Offering

A leader in the diesel engine industry, Kirloskar Oil Engines’ non-banking financial company (NBFC), Arka Fincorp has introduced a new small ticket loan for Tier II MSMEs. The loan will focus on MSMEs that want to raise debt against property. Arka Fincorp has a loan target for the launch between Rs 10 lakh and Rs 30 lakh. Let us look deeper into Arka Fincorp’s further plans in favour of MSME growth.

Arka Fincorp’s New Small Ticket Loans: A Boost For Small Businesses

Arka Fincorp is the NBFC arm of the Kirloskar Group. Under its new small ticket loan offering, the company is ready to offer loans to MSMEs within the range of Rs 10 lakh to Rs 30 lakh against property as collateral. Arka Fincorp’s new offering targets tier-II cities and smaller towns. The company already have expertise in the field of credit and finance. Apart from this, they also offer loans of up to Rs 5 crore to MSMEs with a tenure of up to 15 years. Let us understand the company’s main moto behind running different loan offers for MSMEs.

As we know, MSME is one sector that the government is supporting the most. Prime Minister Narendra Modi Modi also wants small and micro enterprises to expand their exports. However, this work can be completed only with the support of the government. According to the company’s CEO and Executive Vice Chairman Vimal Bhandari, Arka Fincorp wants to contribute to the growth of MSMEs in small towns. They want to inculcate the spirit of entrepreneurship among people that will help in uplifting the country as a developed economy.

Arka Fincorp believes that everyone should get equal development opportunities. Hence they also offer loans such as personal lending, corporate lending, real estate and urban infrastructure. As we know Arka Fincorp is a non-banking company. But even after this, they provide many more loans to companies than banks. If we talk about Banks, in March 2022, the banks could only grow 12.7% YOY, while in March 2023 also Banks grew only 12.4% YOY in terms of providing MSME credit.

This new loan offering can be of great help to MSMEs. A lot of MSMEs are unable to get loans easily due to their poor payment cycle. The loans given will work as financial assistance to micro-enterprises that want to do something big. Thus, credit facilities are becoming more accessible to MSMEs even on a smaller scale. The demand for NBFCs may increase compared to banks. But, both have their perks for borrowers. Stay tuned for more information.