Kinara Capital's myKinara app aims to enable MSME entrepreneurs with collateral-free loans within 24 hours
Bengaluru-basedhas launched myKinara mobile app to provide collateral-free loans to MSMEs within 24 hours. The app comes with a simple three-step process — a first-of-its-kind in the unsecured MSME business lending space.
Speaking exclusively to SMBStory about the app launch, Hardika Shah, Founder of Kinara Capital, says the app is a gateway for micro, small and medium enterprises (MSMEs) to get comfortable in the digital lending space.
MSME entrepreneurs can check their eligibility in under one minute, without uploading any document at first. By completing the KYC and income verification directly on the app, the applicant will receive a loan decision with details of the approved loan amount, interest rate, loan tenor, and the approximate monthly EMI. They can then continue the loan disbursement process with an e-sign option. MSMEs can avail loans between Rs 1 lakh and 30 lakh through myKinara app.
India boasts of 6.3 crore MSMEs with micro-enterprises dominating the segment, however, most of these businesses lack the digital know-how. For MSMEs that have been operating traditionally for years, digital adoption has been a challenge and opting for a digital loan on a tap through the mobile app would raise eyebrows.
Talking about how Kinara Capital is aiming to bridge this gap, Hardika says that COVID-19 was helpful in moving MSMEs to the digital realm.
"They now understand the importance of going digital. It is true that they have to come out of their shell and adapt to the changing ecosystem which would take its own time. As a company, we aim to handhold them through the digital lending process and make the best use of it," Hardika says.
“Money is crucial for any business and for MSMEs that face acute shortage of capital, an initiative that would get them access to collateral free loans in less than a day was strongly needed. To make it easy and accessible across geographical boundaries, we have introduced the app in vernacular languages,” she explains.
Leveraging years of Kinara’s proprietary data-driven AI/ML-based credit decision making, the myKinara app now makes the digital process used by field officers directly accessible to MSMEs in India.
Hardika says that if MSMEs find any challenge in accessing the app, they can contact Kinara’s multilingual customer call centre directly from the app, or request doorstep customer service if they need in-person support. She adds that Kinara’s vast network of 110 branches will continue to help local MSMEs and follow the same digital process as available on the myKinara app.
To date, Kinara Capital has disbursed 65,000 loans across six states in India, Hardika claims.