Digital-lending platform, Capital Float brings in Proprietor Loans for micro-entrepreneurs in India. The product targets small retailer segment like salons, medical stores, kirana, mobile phone retailers, small restaurants, etc. who face challenges in obtaining loans for business expansion from traditional lenders.
Commencing the launch, Sashank Rishyasringa, co-founder of Capital Float said, “We ran extensive multi city pilots and are glad to see the end result. Our tradition of being pioneers of digital lending in India continues, as we’ve created an entirely paperless process through the app and achieved low unit economics to penetrate a vast market that was untapped. We’ve ensured that the customer experience remains top notch, as the borrower receives the loan in minutes by providing their AADHAAR number. We’re currently adding 2,000 borrowers a month and expect to reach 5000 borrowers per month by March 2018.”
Today, there are above 5 million kirana stores in India which are run by micro-entrepreneurs with business ambitions such as increasing product lines, diversification, digitisation or opening more stores. However, they don’t have quick and easy access to funds.
Capital Float will assist the micro-entrepreneurs by providing loans between ₹25,000 – ₹5 lakhs with convenient repayment options ranging from three to six months. Additionally, Capital Float will also provide loan enhancements, top-ups and renewals based on the business performance of the borrower. Capital Float has partnered with various ecosystem leaders such as Amazon Business, Metro Cash & Carry, Storeking, Payworld and PayTM. Operations are currently live in all the metros, while the team is focussing on taking the product to Ahmedabad, Surat, Chandigarh, Bhopal, Indore and Vizag.
“Getting loans is always a challenge for small retailers in India due to complex documentation, time-consuming procedures and traditional approach to underwriting. Through Proprietor Loans, we aim to support these micro-entrepreneurs to achieve their business aspirations. Our loan product will help our borrowers grow their business, while our partners experience larger volumes of transactions on their respective platforms. We’re currently offering term loans and lines of credit to our borrowers,” added Gaurav Hinduja, co-founder, Capital Float.
Proprietor Loans aims to reduce documentation and the time taken to avail a loan in comparison to traditional banking services.