TheNFAPost Podcast

U GRO Capital is a small business lending fintech platform and the company recently announced its expansion in Tier 2 and 3 regions across five states – Karnataka, Tamil Nadu, Gujarat, Telangana and Rajasthan, where it will provide its loan services to micro-businesses.

Examples of borrowers would include businesses such as Kirana stores, Pharmacies, Mess/ Restaurants, Hair salons, etc. These small businesses face a lack of formal capital infusion due to insufficient database, lack of requisite documents and unavailability of bureau score owing to not having availed any prior financing.

However, U GRO Capital is leveraging its sectoral knowledge and technological capabilities, to solve the credit gap of these businesses.

Below are a few considerations for these businesses to access credit, conveniently from the company:

1. Understanding the information pertaining to the loans

§ Amount that can be lent: The Company will provide secured loans ranging from 1 Lakh to 10 lakh, under its Shakti program. For unsecured loans, the amount ranges from 50,000 to 5 lakh.

§ Loan duration: Tenure ranges from 12 to 36 months for unsecured loans, whereas for secured loans, the duration ranges from 1 to 9 years

§ Timeline for disbursal: U GRO Capital offers loan disbursals in a quick and convenient manner. The disbursal period for unsecured loans is between 3 to 4 days, while for secured loans the disbursal timeline is 7 to 8 days.

2. Documentation required

U GRO Capital utilizes its sector expertise to understand businesses’ current and future cash flows. This allows it to reduce dependency on heavy documentation. In the case of micro-businesses, it utilizes conventional data like GST, ITR, Bank Statements/ Pass-book images. It also uses alternate data like trade bills (Pucca/ Kaccha), electricity bills, etc. to understand the borrower’s repayment capabilities.

3. The process to avail the loan: GRO Micro

§ Small business owner can apply for a Business Loan – assisted by a GRO Micro Sales Executive on its proprietary GRO+ App

§ Provides the necessary documentation

§ Receives in-principle approval post-credit-appraisal within a day of loan application

§ Loan Agreement is signed, and loan is disbursed in the customer’s bank account

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