Tata Cap­i­tal and Cap­i­tal Float join hands to fund small busi­nesses

The DQWeek (Chennai) - - NATION - DQW NEWS BUREAU Mumbai

Tata Cap­i­tal has en­tered into an agree­ment with Cap­i­tal Float to pro­vide Work­ing Cap­i­tal Loans to fi­nan­cially un­der-served Small & Medium En­ter­prises (SMEs) in In­dia.

Tata Cap­i­tal will be colend­ing on Cap­i­tal Float’s dig­i­tal lend­ing plat­form and through this re­la­tion­ship, both the com­pa­nies have col­lab­o­rated to of­fer a unique “Pay Later” prod­uct to SMEs. De­vel­oped in-house by Cap­i­tal Float, this prod­uct pro­vides the bor­rower with a credit limit of up to Rs. 50 lakhs for a pe­riod of 1 year, pre­de­fined on the ba­sis of the in­for­ma­tion shared by the bor­rower. The unique­ness stems from the fact that the bor­rower can make mul­ti­ple draw­downs within the ap­proved limit, which is re­in­stated from time to time upon re­pay­ment by the bor­rower.

Speak­ing about this tie-up, Sarosh Amaria, Chief Op­er­at­ing Of­fi­cer – Com­mer­cial Fi­nanceat Tata Cap­i­tal said, “SMEs are in­te­gral to the fab­ric of our econ­omy con­tribut­ing around 38% of our coun­try’s Na­tional GDP. Tata Cap­i­tal is deeply in­vested in pro­vid­ing ac­cess to credit to small mer­chants & en­trepreneurs through our Sup­ply Chain Fi­nance Busi­ness, in which we are one of the mar­ket lead­ers. Our al­liance with Cap­i­tal Float is an­other step to­wards strength­en­ing our mar­ket po­si­tion. Pro­vid­ing cus­tom­ized prod­ucts like ‘Pay Later’ will not only help speed up the loan process and pnts. iness ance busi­ness is ly Chain Fi­nance busi­ness is . ro­vide a su­pe­rior ex­pe­ri­ence to our cus­tomers, but it will also help boost our pan-In­dia pres­ence.”.

Sashank Rishyas­ringa, Co- Founder, Cap­i­tal Float, said, “Tata Cap­i­tal is a great fit for us, both in terms of vi­sion and fo­cus on de­liv­er­ing great dig­i­tal ex­pe­ri­ences to bor­row­ers. Tata Cap­i­tal’s ex­ten­sive ex­per­tise in Sup­ply Chain Fi­nance along with our pro­fi­ciency in de­vel­op­ing prod­ucts cus­tom­ized for SME seg­ments makes this part­ner­ship par­tic­u­larly po­tent from a scal­a­bil­ity per­spec­tive. We be­lieve new age Fin­tech com­pa­nies and es­tab­lished fi­nan­cial in­sti­tu­tions need not com­pete, but can col­lab­o­rate to widen the fi­nanc­ing op­tions avail­able for SMEs. By co-lend­ing with Tata Cap­i­tal, we can lever­age their bal­ance sheet, while they can diversify their port­fo­lio by lend­ing to newer sets of SMEs.”

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