Fino Finance targets MSMEs, aims Rs 1000 cr AUM from the sector

Thursday, 23 November 2017

- Launches MSME loan in Delhi NCR for small business owners
- Aims for a significant pie of the huge un-banked MSME opportunity
- Plans deeper penetration largely in the Hindi belt


Mumbai: Fino Finance Limited, a RBI registered NBFC-MFI and subsidiary of Fino Paytech, launched loans for MSME customers to explore growth opportunities. The micro-finance firm adds MSME loans to its existing offering of joint liability group (JLG) lending in remote rural areas.


According to BCG-FICCI 2017 report, less than 10% of the 50 million strong MSMEs (Micro, Small and Medium Enterprises) in the country borrow from formal financial institutions. In this context, NBFCs and NBFC-MFIs have emerged as effective alternate to banks for credit related products.


Fino Finance launched MSME loans in Delhi NCR early this month and would target small business owners such as those running kirana, garment, hardware, local dairy and beauty parlour outlets among others.


Terming MSME sector as the next big growth driver, Mr. Sudeep Gupta, Chief Operating Officer, Fino Finance Limited said, “MSME loan is a continuation of our endeavor to pursue growth opportunities. We plan to raise Rs 200 crore to fund this initiative and expect our MSME portfolio to touch Rs 1000 crores by FY 2022.”


“We started a pilot in Madhya Pradesh earlier this fiscal, the results of which have been encouraging and gave us confidence to launch in Delhi NCR. Going forward we will offer MSME loans in UP, Bihar and Maharashtra, where we have been doing JLG business for almost a decade. We intend to tap those unbanked segments with higher loan requirements for business expansion and have valid property documents as collateral,” added Mr Gupta.


The collateral based MSME loans have an average repayment time of 36 months and the ticket size ranges from Rs 1 lakh to Rs 15 lakhs. Small business owners use the loan amount as working capital to expand their business, increase income and improve quality of life.


About Fino Finance:
Fino Finance Private Limited (Formerly Intrepid Finance and Leasing Private Limited) is a non-deposit taking NBFC-MFI registered with the RBI. The company is engaged in the business of joint liability group (JLG) based micro-loans providing affordable micro-credit to the underserved and un-served women population of the country.