Credit and Finance for MSMEs: It offers online loans up to Rs 10 lakhs to MSMEs through various product offerings such as supply chain finance and transaction-based loans. Loans up to Rs 2 lakhs are provided without collateral or documentation.
Credit and Finance for MSMEs: The financial services company Aditya Birla Capital launched Udyog Plus, an MSME-focused portal, on Wednesday. The portal provides capital and other business solutions to small businesses, including investments, advisory services, and utility services.
It offers online loans up to Rs 10 lakhs to MSMEs through various product offerings such as supply chain finance and transaction-based loans. Loans up to Rs 2 lakhs are provided without collateral or documentation. For loans above Rs 2 lakhs, MSMEs are required to submit financial statements, ITR, and GST returns.
Additionally, the platform has partnered with other firms to offer services that support the growth of entrepreneurs’ businesses. These services include investment solutions, business networking, insurance, digital commerce, business management and banking tools, accounting, payrolling, and taxation solutions, among others.
Currently, Udyog Plus is accessible through its web platform, with a mobile application expected to be launched by the end of the year.
According to Vishakha Mulye, the Chief Executive Officer of Aditya Birla Capital, “There is a huge opportunity in the market. The MSME sector contributes about 30 per cent to the GDP but the credit penetration is very low. What we need is access and awareness among MSMEs. One of the reasons for low penetration is it was very difficult to get access to these MSMEs. Further, due to lower ticket sizes, the cost of delivering credit is high. Even delinquencies were high in the absence of any structured data. With digitisation and industry getting formalised, all these three factors have undergone a change and it is giving more comfort.”
Aditya Birla Capital recently announced a collaboration with the National Payments Corporation of India (NPCI) to develop digital payment solutions specifically for MSMEs.
As of March 31, 2023, Aditya Birla Finance, the lending arm of Aditya Birla Capital, manages a total Asset Under Management of Rs 80,566 crore, with Rs 40,353 crore dedicated to business loans.