Godrej Capital to offer SMEs loan against property with tenure up to 25 years

Credit and Finance for MSMEs: With its flexible repayment plan ‘Design Your EMI’, GCL said it aims to address the issues of seasonal and uneven cash flows faced by SMEs in India.

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Godrej Industries in April this year had launched GCL and also committed to invest Rs 1,500 crore in it. (Image: pixabay)

By Prerna M

Credit and Finance for MSMEs: Godrej Group’s financial services arm Godrej Capital Limited (GCL) on Thursday launched a new loan offering, through its subsidiaries, in its Loan Against Property (LAP) portfolio LAP 25. The new offering with a tenure of up to 25 years will focus on small and medium enterprises (SMEs) to allow flexibility of lower outflows during the loan term, according to a company statement.

With its flexible repayment plan ‘Design Your EMI’, GCL said it aims to address the issues of seasonal and uneven cash flows faced by SMEs in India. For instance, SMEs can choose to pay only interest for up to the first three years of the loan. The company said it will soon launch an option to pay installments quarterly or once in two months.

“The product offerings that we bring in are the basis of our learnings from the growing consumer segmentation and micro clusters that we have engaged with,” said Manish Shah, MD & CEO, Godrej Capital in the statement.

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“Godrej’s intent and approach have always been to address the credit supply gap through fair, fast, and flexible offerings,” he added. The move is in line with the company’s aim to grow its balance sheet by Rs 6,000 crores by 2023 and Rs 30,000 crores by 2026.

LAP 25 will be available in upcoming locations of GCL’s subsidiaries viz., Chennai, Indore, Jaipur, Chandigarh, Surat, and Hyderabad as part of its strategic expansion. It is currently available in Mumbai, Pune, Delhi NCR, Ahmedabad, and Bengaluru.

GCL is the holding entity of Godrej Housing Finance and NBFC Godrej Finance. It offers home loans and loans against property as it looks to build a long-term retail financial services business in India. Godrej Industries in April this year had launched GCL and also committed to invest Rs 1,500 crore in it.

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