Arka Fincap Launches Small Ticket Loans for MSMEs in Tier II and Beyond October 7, 2024 MSME Sampark Msme News 0 Arka Fincap, the non-banking financial arm of the Kirloskar Group, has introduced a new small ticket loan product designed specifically for Micro, Small, and Medium Enterprises (MSMEs). This offering, named Uday, provides loans ranging from ₹10 lakh to ₹30 lakh against property, aimed at helping MSMEs in Tier II cities and beyond meet their working capital needs. Currently, Arka Fincap offers MSMEs loans up to ₹5 crore against property with a repayment tenure of up to 15 years. The Uday loan was initially rolled out in five key cities in Tamil Nadu—Salem, Vellore, Tirupur, Porur, and Coimbatore—with plans to expand across India. Vimal Bhandari, Executive Vice Chairman and CEO of Arka Fincap, highlighted the importance of supporting MSMEs, stating, “Quick and reliable access to credit is crucial for fostering entrepreneurship in smaller cities and towns. We aim to drive economic growth at the grassroots level by providing financial inclusion to MSMEs, which are the backbone of India’s economy.” Founded in 2018 as a subsidiary of Kirloskar Oil Engines Limited (KOEL), Arka Fincap specializes in MSME and personal lending, corporate lending, real estate, and urban infrastructure financing. The company’s assets under management (AUM) stood at ₹5,768 crore as of June 2024, with 53% of the AUM coming from the retail sector. Arka Fincap holds a strong CRISIL AA/Stable rating for long-term borrowing and an A1(+) rating for short-term borrowings, reflecting its robust financial health. Non-banking financial companies (NBFCs) have played a crucial role in providing last-mile credit to MSMEs, especially in underserved regions. Data from the Reserve Bank of India (RBI) shows that NBFC loans to MSMEs have significantly outpaced those from traditional banks, growing by 21.2% in 2022 and 42.4% in 2023. This growth is largely attributed to the co-lending framework, which allows NBFCs to leverage the low cost of funds from banks while extending their reach to the MSME sector. Disclaimer: The content provided is for informational purposes only. Please verify the information before making any financial decisions, as loan terms and conditions may vary. Popular Articles Msme News AI Could Transform MSMEs and Unlock $500 Billion in Economic Value Msme News Cabinet Approves Prime Minister Dhan-Dhaanya Krishi Yojana to Boost Agriculture in 100 Districts Msme News Cabinet Approves ₹5,000 Crore Equity Support to SIDBI, PM Modi Calls It a Big Boost for MSMEs Msme News EEPC India’s Platinum Jubilee: President Murmu Highlights MSMEs’ Role in Building Innovation Economy Msme News 11 Crore Jobs Created by MSMEs, Backbone of India’s Economy; Rajya Sabha MP Neeraj Shekhar Ji at MSME Bharat Summit 2025 Msme News Digitalization Boosts MSME Lending: SBI Chairman Highlights Government Initiatives Msme News Goa’s First MSME Maritime Cluster Receives Fresh Momentum with New Tenders Msme News Odisha’s MSME Sector Embraces Digital Transformation through CII’s Digital Saksham Program Msme News MSME Secretary Advocates for Amendments to MSMED Act to Strengthen Dispute Resolution Msme News Dr Vivek Bindra Flags MSME Learning Gap as Key Growth Hurdle; Pan-India Entrepreneurs Echo Concern
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