MSME lender FlexiLoans on Thursday said it will disburse Rs 100 crore loans to more than 2 lakh registered users in Maharastra’s Nagpur region by 2025. The company said it has so far disbursed over Rs 20 crore loans to more than 500 MSMEs in the region on the back of “exponential demand” from more than 50,000 registered users in Nagpur.
Founded in 2016 by Manish Lunia, Ritesh Jain, and Deepak Jain, NBFC FlexiLoans claimed over 65,000 loans amounting to Rs 4,000 crore over the past seven years in the country. The company is backed by financiers including Sanjay Nayar, Falguni Nayar, and Maj Invest.
Speaking on the disbursement target, Lunia said Nagpur is one of FlexiLoans’ priority markets now for lending to local MSMEs. The company currently disburses “more than Rs 100 crores on a monthly basis and is on track to achieve our vision of being India’s trusted financial institution for entrepreneurs and MSMEs,” said Lunia.
FlexiLoans said it has over Rs 1,500 crore worth of assets under management (AUM) and is targetting annual disbursal of more than Rs 5,000 crore in 2024-25. In April last year, the company had crossed Rs 1,000 crore AUM and over 70,000 loans worth more than Rs 3,400 crore.
Importantly, NBFC lending has scaled over the past few years apart from bank credit to small businesses. According to a report by the Reserve Bank of India (RBI) on the performance of the banking sector during 2022-23 and 2023-24 (till mid December), growth in loans given by NBFCs to MSMEs was over 3X that of banks, FE Aspire had reported.
In comparison to the 12.7 per cent and 12.4 per cent year-on-year (YoY) growth in MSME credit by banks as of March 2022 and March 2023, the credit growth by NBFCs to MSMEs stood at 21.2 per cent and 42.4 per cent respectively, according to the RBI report.
