Moneyboxx Finance Limited (Moneyboxx), a BSE-listed Non-Banking Finance Company that provides small-ticket loans to micro and small enterprises in Tier-2 cities & towns and beyond today announced that it has got sanction and disbursement of INR 7.5 crore by way of Term Loan from DCB Bank Limited for on-lending to individuals for agri and allied activities which falls under Priority Sector Lending.
With the current round of fundraising, Moneyboxx has so far received sanction of INR 30.9 crore debt during the current fiscal out of which INR 23.9 crore has been availed. Moneyboxx plans to raise a total of over INR 105 crore of debt from various lenders in FY 22.
Moneyboxx plans to utilize the proceeds to support its disbursement target of INR 150 crore in FY22, which will be 2.7 times of its lending in FY21.
Commenting on the debt raised, Mr. Deepak Aggarwal, Co-CEO & CFO, Moneyboxx Finance Ltd said, “We at Moneyboxx Finance have created a robust system to support micro-businesses and entrepreneurs and the fact that leading lender DCB Bank Ltd have reposed faith in us is a validation of our business model and we are indeed grateful to them for their support. On-boarding of DCB is a big event for us as they are the first scheduled bank as a lender which paves the way for larger debt rounds in times to come. The funds will help us to further our cause of supporting the deserving micro enterprises and create a positive impact in this segment.”
“Our cumulative collection efficiency of 99% as of Jun 2021 despite CoVID-19 challenges is testimony to the fact that if underwriting and collection processes are robust, it is possible to create same or even better quality of book along with a sustainable and profitable business model in the unsecured lending segment,” he added.