Kinara Capital targets Rs 200 Cr in loan disbursals through HerVikas Business Loans Program for women
Micro, Small & Medium Enterprises (MSME) fintechhas revealed it plans to disburse Rs 200 crore through its HerVikas Women Business Loans program in the fiscal year FY22-23. In the last two years, Rs 125 crore has been disbursed across 2,000 HerVikas business loans to support women entrepreneurs, stated an official release.
HerVikas essentially offers collateral-free business credit with an automatic discount which is a move towards financial inclusion of underserved segments. The HerVikas discount is automatic and built in the framework of myKinara app, which makes the process seamless and accessible.
Founder & CEO of Kinara Capital, Hardika Shah, stated,
“HerVikas is a successful program because it is providing catalytic capital to MSME women entrepreneurs for business growth without a collateral requirement. In India, 90 percent of MSME women entrepreneurs do not avail formal credit options, mostly due to lack of land or property collateral. We are proud to renew our commitment for HerVikas business loans because women entrepreneurs don't just earn a livelihood, they change the lives of their families and communities!”
Till date, Kinara Capital has supported over 6000 women entrepreneurs in their business journey. Nearly 28 percent of these customers are repeat takers of the fintech's services. This has led to the direct impact of Rs 10 crore in incremental income generation for MSME women entrepreneurs. Furthermore, Kinara Capital has supported 10,000+ jobs in local economies as well. Women entrepreneurs often face issues such as gender bias and social norms when it comes to accessing credit for their business, and Kinara Capital bridges this gap. It does so by eliminating the bias and also offering discount on collateral-free credit.
The data driven system utilised by the fintech ensures that approvals for applications are based on business actuals and not on the gender of the loan seeker. The myKinara app is available in local, vernacular languages so that applicants are comfortable using the platform. The loan decisioning-to-disbursement process can also be taken within 24-hours, making the operation smooth and simple.
Kinara Capital offers loans within the Rs 1-30 lakh range, and the HerVikas discount is offered across its products for women entrepreneurs. The business loans to MSME women entrepreneurs is available in over 90 cities across Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, Gujarat, Maharashtra, and Puducherry.
Edited by Anju Narayanan