MSME loans: Godrej Capital, the financial arm of Godrej Group on Thursday said its MSME unsecured loan portfolio has crossed Rs 500 crore AUM (assets under management). The company has aimed at Rs 1,000 crore AUM for its unsecured portfolio by the end of FY24. The MSME loan portfolio of Godrej Capital currently stood at Rs 3,900 crore, with a target to reach closer to Rs 6,000 crore by the end of this fiscal.
“We are delighted to see the strong acceptance of our product offerings tailored to the distinct needs of MSMEs in India. Our focus remains on the growth of the Indian MSME sector and to contribute to its success story and financial aspirations,” said Pankaj Gupta, Chief Business Officer, Godrej Capital.
Focusing on MSMEs, Godrej Capital launched its unsecured business loan product in April this year to address the need for cash flow management. The company offers flexible repayment options, longer tenure of up to 60 months, and rewards on timely repayments. Since starting business operations in November 2020, Godrej Capital through its subsidiaries has built a balance sheet of around Rs 8,000 crore across housing and MSME loans.
Godrej Capital recently introduced the digital platform Nirmaan to help MSMEs with a bouquet of solutions for the growth and expansion of their businesses such as expanding potential market reach, streamlining legal and regulatory requirements, improving employee health and welfare, and providing coaching to small enterprises.
Godrej Capital currently offers business loans across 31 cities and aims to double its presence to 60 locations by the end of the next financial year while its channel partner count is also likely to grow from over 2,500 to 10,000 in the next two to three years.
MSMEs in the country were deployed Rs 21.69 lakh crore by scheduled commercial banks under priority sector lending in September 2023, up 17.2 per cent from Rs 18.50 lakh crore deployed in September 2022, according to the latest data on sectoral deployment released by the Reserve Bank of India (RBI). The September deployment was 14.3 per cent of India’s Rs 151.3 lakh crore non-food credit during the month vis-a-vis 14.6 per cent of Rs 126 lakh crore non-food credit in September last year.