Loans for micro entrepreneurs: NBFC Moneyboxx Finance, which lends to micro entrepreneurs in Tier-III and beyond towns, has crossed Rs 400 crore in assets under management (AUM) in July 2023. The company said it added 11 branches in the current financial year so far, taking its branch network to 72 branches across six states as of July 31, 2023. The NBFC also added four new lenders viz., HDFC Bank, Federal Bank, Fincare Small Finance Bank and Protium Finance in the current financial year. It is supported by 27 lenders overall including eight banks, large NBFCs, and impact funds.
Moreover, the company has co-lending and business corresponding partnerships in place with various lenders.
Also read: MSME loans: Credit outstanding by banks jumps 12% in FY23; 49% growth in 5 years
“We see tremendous growth opportunity in Rs 1-10 lakh business loan segment given the huge credit gap for micro enterprises and the presence of very few focused players in this segment. We have a proven business model to service this segment with robust underwriting practices and one of the best asset quality metrics in the industry (90+ PAR at 0.59 per cent of AUM on Mar’23),” said Mayur Modi, Co-founder, Moneyboxx Finance in a statement.
With the aim of driving financial inclusion in rural and semi-urban India, Modi said the company aims to reach an AUM of over Rs 800 crore and 100 branches by FY24 with support from lenders, lending partnerships, and planned capital raise.
Moneyboxx Finance customers include underserved micro entrepreneurs in important and essential segments such as livestock, kirana, retail traders, micro-manufacturers. The unsecured and secured loans extended range from Rs 70,000 to Rs 10 lakh for up to 84-month tenure.
Also read: Microfinance gross loan portfolio jumps 18% in FY23; write-offs up by 7.7%: Report
Meanwhile, the credit outstanding to the MSME sector by scheduled commercial banks in the financial year 2022-23 jumped by 12.3 per cent to Rs 22.6 lakh crore from Rs 20.11 lakh crore in FY22, according to the data shared by Bhanu Pratap Singh Verma, Minister of State in the MSME Ministry in a written reply to a question in the Rajya Sabha.
The amount outstanding in FY21 and FY20 stood at Rs 17.83 lakh crore and Rs 16.13 lakh crore respectively. During the five-year period, the credit outstanding to the MSME sector grew by 49.6 per cent from Rs 15.10 lakh crore during FY19.
