IBEF: July 24, 2019
The fintech company, Cash Suvidha that provides financial support in form of business loans to Small and medium-sized enterprises (SMEs & MSMEs) and personal loans to individuals raised US$ 2.3 million in debt in the first quarter of FY2019-2020.
The funds were raised by private placement on Non-convertible Debentures and from numerous financial institutions. As of the last financial year, Cash Suvidha raised a total debt of US$ 10.25 million from different financial institutions.
The fund raised will be utilized to strengthen the loan books of the company. Cash Suvidha which was founded in 2016, offers a variety of loans and funds that are mainly used to be lend to SMEs & MSMEs and to the required individuals, mainly in Delhi NCR, Bangalore, Pune, Hyderabad, Mumbai, and Rajasthan.
This comes as the company is expanding its horizon of financial inclusion for SMEs and MEs in India. This will allow the company to accelerate its growth and enhance its capability to provide the best conditions to the borrowers that do not have an established credit history
Cash Suvidha has SME & MSME loans as one of the sought- after category in loans. The problems faced by the borrowers was to obtain credit from the bank due to numerous reasons which were addressed by Cash Suvidha with the disbursement of 70-75 per cent of the total loans to SMEs & MSMEs. Cash Suvidha provides loans with a ticket size of Rs 50,000 (US$ 695) - Rs 5,00,000 (US$ 6950) for SMEs and Rs 15,000 (US$ 208.5) - Rs 50,000(US$ 695) for MSMEs.
The company is known for its rapid digital processing, easy lending services and disbursing loans within three working days. Cash Suvidha have established the best leads for credit and match them with the perfect kind of product.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.