The Indian MSME sector has been coming to mainstream attention, owing to the well-concerted efforts of the new age financial companies, NBFCs and FinTechs in India. Further spearheading the revolution for financial inclusion of the MSME Sector is Finova Capital, the NBFC licensed by the Reserve Bank of India. The company announced its target of servicing over 1500 MSMEs by 2018.
Founded in 2015 by Mr. Mohit Sahney, Finova Capital has already serviced more than 250 MSMEs, disbursing loans worth more than INR 20 Cr in the remote locations of India. Headquartered in Jaipur, Rajasthan, Finova Capital has a last-mile connect in Chomu, Bassi, Jobner and Bagru. In order to service over 1500 MSMEs by 2018, the company is further eyeing at immediately expanding to Dausa, Reengus, Phulera, Kuchaman and Sri Madhopur.
Commenting about their latest endeavour, Mr Mohit Sahney, MD & CEO of Finova Capital said, “The MSME sector in India has immense potential. Not only does the sector is one of the chief contributors to country’s GDP and manufacturing exports, it also contributes towards job creation, growth and development of the remote and rural India. While the sector has been snubbed by banks and formal financial institutions for long, due to lack of organization, business bookkeeping etc, at Finova Capital, we are inspired to enable their growth and expansion, by making adequate financial solutions available at reasonable price and flexibility. In the next phase of our growth, we shall be expanding to hitherto unexplored cities like Dausa, Reengus, Phulera, Kuchaman and Sri Madhopur, with a target of servicing over 1500 MSMEs by 2018.”
Recognizing the need of MSMEs, Finova Capital offers loans with flexible ticket sizes and payback tenures. As per the requirements, the small-scale business owners can take loans starting from 2 lakhs and going up to 20 lakhs.
Sharing his opinions on the services provided by Finova Capital, Mahavir Prasad Parate, Tea vendor from Lal Kothi in Jaipur said, “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 5 Lakh for a comfortable tenure of 7 years. Their ease of operations and support made it easier for me to scale-up my business.”
Echoing the same thought, Narayan Singh Negi, 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.”
Within just a year of its operations, Finova Capital has emerged as one of the most preferred financial services providers amongst MSMEs in India.