kinara capital: Kinara Capital targets loan disbursements of Rs 200 cr to women owned cos in FY23

NEW DELHI: MSME fintech Kinara Capital announced on Tuesday that it plans to disburse loans worth Rs 200 crore to women-owned businesses in the next financial year. Kinara Capital is advancing women’s entrepreneurship by pledging to disburse Rs 200 crore through its HerVikas business women loan scheme in the coming financial year FY22-23, the company said in a statement.

HerVikas provides MSME women entrepreneurs with access to unsecured business credit with automatic discount, thereby promoting financial inclusion of an underserved segment, he said.

Over the past two years, the company has disbursed over Rs 125 crore on 2,000 HerVikas business loans to female MSME entrepreneurs.

“HerVikas is a successful program as it provides catalytic capital to female MSME entrepreneurs to grow their business without collateral requirement.

“In India, 90% of female MSME entrepreneurs do not have formal credit options, mainly due to lack of land or property collateral,” said Hardika Shah, Founder and CEO of Kinara Capital.

The non-banking finance company said it has supported more than 6,000 women entrepreneurs to date, of which around 28% have become regular customers.

This has led to a direct impact of Rs 10 crore on additional income generation for female MSME entrepreneurs and supported over 10,000 jobs in local economies.

Gender biases, social norms and quick access to formal credit are some of the main challenges faced by female entrepreneurs looking to grow their business.

Kinara made systemic change by removing bias from its process and offering an initial discount on unsecured credit, he said.

It offers business loans in the range of Rs 1 to 30 lakh with the HerVikas discount automatically offered on all its products for female entrepreneurs. The product is available in over 90 cities in Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, Gujarat, Maharashtra and Pondicherry.

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